Dear Traders Trading Price Action,
I have decided to post a second trading idea, since the day is fruitful for the traders trading price action. I am looking at the AUD/USD currency pair. In this setup we can see a clear continuation of the the previous trend. There was a bearish-engulfing candlestick pattern a few sessions ago, which was the initial trigger for some more aggressive sellers to initiate the selling. Today’s traders trading price action are showing us a renewed interest in this currency pair. We can clearly see how the bearish mood returns and Friday’s bullish daily candle has been almost engulfed by today’s bearish candle. Being really close to the the major support level of 0.8500, we should be extra careful about judging this trading idea. But at the same time, we have a confluence of one bearish engulfing pattern and one bearish candle since the 17th of November, which is a more affirmative indication of the bearish mood.
All traders trading price action including me, should consider taking a short trade at current levels or after a brief retracement towards 0.8650. A short trade at those levels should definitely be accompanied by a stop-loss just above 0.8730. The initial price target for this trade might be 0.8440 and then if price action shows indication for further bearish mood- 0.8000.