AUDUSD produced two good-looking H4 Bearish candles consecutively today. The H4 chart shows that the pair is in a range. However, today’s price action suggests that the pair might take a Bearish move if it produces an H4 corrective candle by holding the breakout level and then produces an H1 Bearish Engulfing Candle right at the breakout level. Let us have a look at the H4 AUDUSD chart.
Have a look at the chart here. The price was having a correction on the H4 chart after being Bullish. However, the last H4 candle so far broke the level of 0.78720. This is not an H4 breakout yet since the candle is not finished, but surely it is an Hourly breakout. If the price now goes back to the breakout level and is held by the upcoming H4 candle, then we would have to wait for an H1 Engulfing Bearish Candle right at that level to go short on the pair later today. Let us have a look at the summary of the trade…
- Sell Stop Order: 0.78720
- Stop Loss: 0.79030
- Take Profit: 0.78000
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The USD has a massive news event today “FOMC meeting minute”. All the USD pairs, in fact almost all the pairs are going to get some volatility. However, if we get the signal within the next H4 candle, then we would be alright to take the entry. If it takes too long, I mean two H4 candles to produce the signal, then we might as well avoid taking the entry.
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