AUDUSD Trading Setup
by: Colibri Trader
I have been monitoring the trading setup from last time. Price has dipped below the previous low. That is what I was looking for more or less.
Today, there was a mother rejection candle that formed on the daily timeframe. On the 4H I have spotted a two-candle bullish engulfing pattern.
All those patterns are indicating that the bullish enthusiasm is returning slowly. Coupled with the bearish rejection from last time, we are looking at a potential reversal here.
I will be looking at the level of 0.7830 for a potential long entry. You should also be careful with the 0.7880 level and especially if the price rejects it.
My hypothetical target is 0.7900. My secondary target is 0.8100, but it depends on how price at around those levels.
The German DAX trade setup from last week is playing out very well, too. I am up roughly 250 pips and am still riding this one. Price is approaching the level of 13,000 where I expect to see some major resistance.
So far price is not indicating any bearishness, but the closer we got to this level, the more cautious I will be.
If you have any questions, just hit me up at: firstname.lastname@example.org