HERE ARE 2 GOOD REASONS TO GET LONG ON $AUDUSD NEAR THE RECOMMENDED PRICE.
AUDUSD D CHART
BEARISH BUTTERFLY CD LEG
THIS IS A BEARISH PATTERN, BUT I’M LOOKING TO CATCH THE CD UPLEG OF THIS MOVE BASED ON THE TRENDLINE RESISTANCE BREAK (BLACK DOTTED LINE) AND THE ABCD PATTERN WITHIN THE HARMONIC. THE ABCD HERE IS EXPLAINED BELOW IN THE 4HR CHART ANALYSIS.
ALSO, NOTE WHAT PRICE ACTION IS TELLING US (BLUE CIRCLE). LOWER LOW&CLOSE BELOW THE PREVIOUS MAJOR LOW AT 0.6900 TELLS US WE ARE LONG-TERM BEARISH. SO THE BEST OPPORTUNITY IS GOING TO COME LOOKING TO GET SHORT AT 0.7500 ON THE BEARISH BUTTERFLY COMPLETION. IF THAT HAPPENS, IT WILL BE A MASSIVE OPPORTUNITY. BE ON THE LOOKOUT FOR THE BLOG POST AND MAYBE SET AN ALERT AT 0.7500.
AUDUSD 4HR CHART
THIS IS A POSSIBLE ABCD PATTERN. A 0.618 RETRACEMENT OF THE AB LEG (YELLOW CIRCLE) USUALLY RESULTS IN A 1.618 FIB EXTENSION (YELLOW CIRCLE). NOTICE THE FIB CONFLUENCE THIS CREATES AROUND 0.7500.
THE POSSIBLE BEARISH BUTTERFLY (ORANGE) IS TELLING ME TO BE PATIENT AND WAIT FOR A RE-TEST OF THE DAILY TRENDLINE. THE BLACK ARROWS MARK WHAT I’M ANTICIPATING. I’LL BE LOOKING TO GET LONG AROUND 0.7160, WHICH IS A 0.618 RETRACEMENT OF TODAY’S UPSIDE AND ALSO INSIDE PREVIOUS STRUCTURE (GREEN BOX).
STOP @ 0.7030, ENTRY @ 0.7160, TP @ 0.7480
130 PIPS : 320 PIPS (RISK : REWARD)
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