Analysing the Bearish Trend on this pair, we can see that after the new structure low, we got a 382 retracement right at previous structure before continuing the downward movement down into the 1.618 extension before consolidating again.
If we are looking to get short and jump on the trend, the question we need to ask is where can we get involved?
So we build a case for entry.
First of all, looking left we can identify previous support which "should" now act as resistance.
Next we can draw in a Fibonacci retracement tool from the previous outside return to the new structure low and you can see we get a 382 retracement which ties in nicely with the previous harmonic move.
Next we can tae a Fibonacci retracement from the Starting Point to the most recent low and you see we get a 0.618 retracement right in the same level.
This identifies the pink area as nice probable entry zone or kill zone to get involve in shorting this pair.
Some high impact news out on the AUD tonight which may see the pair push up out of this consolidation. If we can push up into this zone we can then look to get involved.
Aggressive traders may enter at the 382 whilst more conservative traders may look for further filters strengthening their case for entry such as an AB=CD harmonic move, advanced pattern completion or even a double top on a lower time frame.
I will be keeping an eye on this pair over the next few days.
Good luck in the markets.
If we are looking to get short and jump on the trend, the question we need to ask is where can we get involved?
So we build a case for entry.
First of all, looking left we can identify previous support which "should" now act as resistance.
Next we can draw in a Fibonacci retracement tool from the previous outside return to the new structure low and you can see we get a 382 retracement which ties in nicely with the previous harmonic move.
Next we can tae a Fibonacci retracement from the Starting Point to the most recent low and you see we get a 0.618 retracement right in the same level.
This identifies the pink area as nice probable entry zone or kill zone to get involve in shorting this pair.
Some high impact news out on the AUD tonight which may see the pair push up out of this consolidation. If we can push up into this zone we can then look to get involved.
Aggressive traders may enter at the 382 whilst more conservative traders may look for further filters strengthening their case for entry such as an AB=CD harmonic move, advanced pattern completion or even a double top on a lower time frame.
I will be keeping an eye on this pair over the next few days.
Good luck in the markets.
