Trade Bias: Bearish
Looking at all three timeframes, we're in a bearish cycle on the 4H chart after a recent rejection from the 0.6340-0.6360 resistance zone. On the 1H chart, we can see a recent pullback that may be losing momentum, setting up a potential continuation of the downtrend.
Entry Price: 0.6287
Looking to enter short on the current pullback to the 0.6285-0.6290 zone, which aligns with previous support/resistance levels.
Stop Loss: 0.6320
Placing the stop loss above the recent swing high on the 1H chart, keeping the risk within your 35 pip maximum.
Take Profit Levels:
Primary TP: 0.6235 (Previous support zone from March 8-9)
Extended TP: 0.6190 (Major support from early March)
Risk-to-Reward Ratio:
Primary TP: 1:1.5 (33 pips risk for 52 pips reward)
Extended TP: 1:2.9 (33 pips risk for 97 pips reward)
Trade Rationale:
The AUD/USD shows bearish pressure across multiple timeframes:
On the 4H chart:
Price is in a bearish structure after rejection from the 0.6400 level
Current upward movement appears to be a countertrend pullback
The pair is showing resistance at the 0.6320-0.6340 zone
On the 1H chart:
Failed rally attempt with lower highs being formed
Price is showing resistance near 0.6310-0.6320
Overall structure suggests a potential continuation of the downtrend
On the 15m chart:
Recent bullish momentum appears to be waning
Price is struggling to break above recent resistance levels
Entry Triggers and Trade Management:
Wait for rejection candles at the 0.6285-0.6290 zone (bearish engulfing, shooting star, or doji)
Consider partial profit-taking at the primary target (0.6235)
Move stop loss to breakeven after price moves 25+ pips in favor
Consider trailing stop for the remainder of the position if targeting the extended TP
This bearish setup offers favorable risk-reward while aligning with the multi-timeframe technical structure. The current position of price near resistance levels provides a good entry opportunity with defined risk.
Looking at all three timeframes, we're in a bearish cycle on the 4H chart after a recent rejection from the 0.6340-0.6360 resistance zone. On the 1H chart, we can see a recent pullback that may be losing momentum, setting up a potential continuation of the downtrend.
Entry Price: 0.6287
Looking to enter short on the current pullback to the 0.6285-0.6290 zone, which aligns with previous support/resistance levels.
Stop Loss: 0.6320
Placing the stop loss above the recent swing high on the 1H chart, keeping the risk within your 35 pip maximum.
Take Profit Levels:
Primary TP: 0.6235 (Previous support zone from March 8-9)
Extended TP: 0.6190 (Major support from early March)
Risk-to-Reward Ratio:
Primary TP: 1:1.5 (33 pips risk for 52 pips reward)
Extended TP: 1:2.9 (33 pips risk for 97 pips reward)
Trade Rationale:
The AUD/USD shows bearish pressure across multiple timeframes:
On the 4H chart:
Price is in a bearish structure after rejection from the 0.6400 level
Current upward movement appears to be a countertrend pullback
The pair is showing resistance at the 0.6320-0.6340 zone
On the 1H chart:
Failed rally attempt with lower highs being formed
Price is showing resistance near 0.6310-0.6320
Overall structure suggests a potential continuation of the downtrend
On the 15m chart:
Recent bullish momentum appears to be waning
Price is struggling to break above recent resistance levels
Entry Triggers and Trade Management:
Wait for rejection candles at the 0.6285-0.6290 zone (bearish engulfing, shooting star, or doji)
Consider partial profit-taking at the primary target (0.6235)
Move stop loss to breakeven after price moves 25+ pips in favor
Consider trailing stop for the remainder of the position if targeting the extended TP
This bearish setup offers favorable risk-reward while aligning with the multi-timeframe technical structure. The current position of price near resistance levels provides a good entry opportunity with defined risk.
Trade closed: stop reached
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.
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.