AUDUSD produced a bullish daily candle yesterday. The pair had consolidation on the H4 chart and made a breakout at yesterday’s highest high on minor time frames. If the pair produces an H1 bullish engulfing candle at the breakout level, the buyers may go long to grab some green pips. Let us have a look at the H4 AUDUSD chart. This trade idea was generated by our powerful Elite Swing Trader System.

The chart shows that today’s first H4 candle came out as a bullish reversal candle. The level of 0.67540 has been the level of support. The very next candle has been bullish as well breaching the level of 0.67715. This is the level where the price reacted several times. The price may make a pullback. If we get an H1 bullish engulfing candle right at the level of 0.67540, then the price may head towards the level of 0.68000 with good buying pressure. Let us have a look at the summary of the trade...

• Buy Stop Order: 0.67825
• Stop Loss: Below 0.67603
• Take Profit: 0.68072

If we flip over to the H1 chart, we see that the price is to come back to the breakout level by crossing good distance. Thus, it is going to be a correction on the H1 chart. There is a difference between consolidation and correction. Consolidation usually occurs by one corrective candle whereas correction occurs at least two candles. The best way to find this out is by using Fibonacci Retracement tool. Consolidation occurs within Fibonacci level 78.6 and Correction occurs below 78.6. It goes up to the Fibonacci level 38.2. For more trade ideas, join the Price Action Society... If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about the Price Action Society.