AUD/USD Long Setup off of support
Updated
Price started off 2016 with a strong bullish trend capping off with a high at 0.78340, and lost momentum
Potential Long setup, if price reverses and bounces off of support at ~ 0.723257 levels with tight stop loss and good risk reward ratio 1:2.5 or better. Price may also slice through this level and drop down to ~ 0.71830 levels
I would be looking for today's daily candle to indicate some sort of indecision after the close i.e doji / hammer / spinning top candle before placing an entry order.
Also some indication on the smaller time frame charts 12hr, 8hr, 4hr of the downward momentum slowing down.
Indecision candle formed on the 8hr chart, but I want to wait for daily candle close, to see price hold at this support level and then place my entry with a tight stop-loss just below the low of daily candle close
* any feedback is welcome
Note
So I never entered the trade unfortunately, it looked good on the smaller time frames, but i was tunneled vision on seeing an obvious "indecision" candle on the close.
Now I will look for a sell setup on price bouncing off resistance, looking to capitalize on the usd recent bullish push to push again after the pullback
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