Today's Technical Analysis were going to be looking once again at my favourite pair, the AUD/USD!
The 3 charts were going to be using are the 4 hourly, hourly and the 5 minute chart.
If we first take a look at the 4 hourly chart we can see price has just recently tested the 76.4% fibonacci retracement level where we can clearly see it being rejected.
If we scale down to the hourly we can also see an inside bar At the peak of the movement where it tests the 76.4% fibonacci retracement.
If we move further down to the 5 Minute chart we can now see price has again retraced to the 61.8% fibonacci level giving us the perfect sell signal.
Ok now for our entry!
We’re looking to place our sell order just a couple pips above the current price at the 61.8% Fibonacci retracement level at 0.9091.
For our stop loss we will be placing it 15 pips above the most recent high and Inside bar formation at 0.9130.
Our take profit we will be placing a very conservative 120 pips away just before the 61.8% retracement level of the most recent upwards move on the 4 hourly chart at price level 0.8970.
This trade gives us a reward; risk ratio of 3:1
Don’t forget to leave a comment with your thoughts and feedback on this setup
Happy trading, Lee J Brown
www.profxblog.com
The bullion future started the day in a negative zone at Rs 25,660 - down (Rs 25).
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