Possible downtrend continuation. Opportunity to short the pair at current area of value whereby bearish engulfing candle coincides with 38% Fibonacci pullback, break of recent short term up trend during consolidation and resistance at 1.1261.
Bullish trend continuation expected following breakout of recent bearish trend , long trade opportunity presents itself due to bullish engulfing candle at 107.07 resistance and 50% Fibonacci support.
Potential to trade the bullish AUDUSD major pair should price break the indecision doji candle positioned on the 50% Fibonacci area of value following a recent period of retracement. Possible 1:3 risk to reward ratio should price reach the 100% Fibonacci extension level.
Suspected change in sentiment from bearish to bullish following consolidation, break of prior high and engulfing candle. Take profit sitting just above 100% Fibonacci extension achieves potential 1:3 RRR.
Trend continuation following period of retracement, large engulfing candle does not provide sufficient risk to reward ratio 1:3 hence open if price retraces to 50% of the engulfing candle. Take profit is 162% Fibonacci extension.
