AUDUSD Trade Setup

by: Colibri Trader

Dear followers,

The trade setup from last time started showing some positive signs. I managed to get into a short trade at 1.1982. It was just after the formation of the bearish engulfing pattern on the 4H.

I am currently monitoring this pair for some bullish signs, in case I went in a trade too early. It looks fine so far.

AUDUSD Trade Setup

Today’s trading idea is coming from the AUDUSD. I have spotted another very similar to the EURUSD pattern. There is a major resistance level 0.8050. The price could not hold above it.

The price action candle from Friday is a bearish rejection- pinbar. It looks like sellers might be ready to turn the tide.

A possible scenario would be to see price going slightly higher and then tumbling lower to the 0.7900-0.7800 area.

If I see that the price holds above the 0.8050 area and forms a bullish pattern, I will reconsider this potential trade.

For now it seems like the price will continue holding below the resistance level at 0.8050.

Happy Trading,

Colibri Trader


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