The AUDUSD is in a clearly defined bearish trend, as can be seen by the fact that it is trading below the Kumo and the Kijun sen on all 3 time-frames (1H, 4H, 1D).
In a bear trend, we're looking of course for shorting opportunities, and we generally want to see a with-the-trend impulsive move, which is then followed by a counter-trend/sideways corrective move, at which point we'd like to enter the trade.
We currently have such a setup on the AUDUSD, as can be seen on the daily and 4H charts, we've had an impulsive bear move, followed by a consolidation move. This consolidation formed a small rectangluar range on the daily, and a descending triangle formation on the 4H chart. Therefore, our entry short will be at the break down of this consolidation zone, with an intitial projection of around 0.807, as plotted on the 1H chart.
In a bear trend, we're looking of course for shorting opportunities, and we generally want to see a with-the-trend impulsive move, which is then followed by a counter-trend/sideways corrective move, at which point we'd like to enter the trade.
We currently have such a setup on the AUDUSD, as can be seen on the daily and 4H charts, we've had an impulsive bear move, followed by a consolidation move. This consolidation formed a small rectangluar range on the daily, and a descending triangle formation on the 4H chart. Therefore, our entry short will be at the break down of this consolidation zone, with an intitial projection of around 0.807, as plotted on the 1H chart.