I'm placing a sell limit order on AUD/USD at a key resistance level, with a take profit set at the bottom of the current daily range. This is a swing trade based on both technical structure and fundamental reasoning.
Technically, price has been moving in a consolidation range on the daily chart, trading between the EMA 100 and EMA 200, which often signals indecision and potential reversal zones. The resistance I'm targeting has acted as a ceiling within this range.
From a fundamental perspective, the USD has been under prolonged pressure due to political uncertainty and weakening investor confidence in the U.S. economy. However, this bearish momentum may be overextended — the DXY (Dollar Index) is currently testing the 99.600 level, a significant historical support. A potential bounce from this zone could bring USD strength back into the picture, increasing the probability of a reversal in AUD/USD.
This trade idea aligns a technical resistance rejection with a possible USD recovery, making it a high-probability short setup in the current market context
Technically, price has been moving in a consolidation range on the daily chart, trading between the EMA 100 and EMA 200, which often signals indecision and potential reversal zones. The resistance I'm targeting has acted as a ceiling within this range.
From a fundamental perspective, the USD has been under prolonged pressure due to political uncertainty and weakening investor confidence in the U.S. economy. However, this bearish momentum may be overextended — the DXY (Dollar Index) is currently testing the 99.600 level, a significant historical support. A potential bounce from this zone could bring USD strength back into the picture, increasing the probability of a reversal in AUD/USD.
This trade idea aligns a technical resistance rejection with a possible USD recovery, making it a high-probability short setup in the current market context
Note
Trade is on, let me know in comments if you want to know how I manage it. See you guys!Trade active
Trade Update:I'm moving my stop loss to break even as the trade has reached a 1:1 risk-reward ratio. With today's upcoming U.S. economic data releases — including unemployment claims and other potentially market-moving news — I prefer to lock in risk-free exposure and let the trade play out safely.
Let’s see how the market reacts. Staying cautious but optimistic. 🔒📈
Trade closed: stop reached
The trade ended as a breakeven, so there was no loss. Looking forward to seeing you on the next trade!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.