AUDUSD had a very bearish day yesterday. The daily candle closed by showing strong bearish momentum. Today’s price action has been bearish as well. First two H4 candles have come out as strong bearish candles. One of them made a breakout at yesterday’s lowest low as well. Thus, the pair might offer a short entry later today. Let us have a look at the AUDUSD H4 Chart. This trade idea was generated by our powerful Elite Swing Trader System.

The level of 0.68120 is the lowest low of yesterday’s daily candle. Today’s first candle came out as a bearish candle but that did not engulf any candle. Thus, sellers shall wait for a pullback. If the current H4 candle closes within the breakout candle, an H1 bearish engulfing candle right at the breakout level would be the signal for the sellers to go short on the pair. Let us have a look at the summary of the trade...

• Sell Stop Order: 0.67815
• Stop Loss: 0.68143
• Take Profit: 0.67300

This is an ABC trading pattern. Thus, we do not have to wait for any upside breakout in this trade setup. Correction speed is the main factor in ABC trading pattern. If the price goes upward faster than it comes down, the trade setup is invalid. One way to find this out is trading chart’s candle is to be closed within the breakout candle. In this trade setup, we need to get an H4 candle to be closed within the breakout level and an H1 bearish engulfing candle at the breakout level to take the short entry. 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.