AUD/USD Analysis on the 1-Hour Chart
In this analysis of AUD/USD, we are currently observing a clear downtrend, with sellers dominating the market. A key resistance zone, marked in pink, has been identified based on previous price action where sellers entered the market to push prices lower.
At the moment, the price is still far from this resistance zone. However, our strategy is to prepare for a potential scenario where the price retraces back to this area. If the price reaches the pink zone, there is a strong likelihood that sellers could return, resuming the downtrend.
Trading Plan:
Long Positions: For traders holding long positions, this resistance zone is an excellent area to consider reducing positions to secure profits, as a rejection from this level could lead to a decline.
Short Positions: If the price shows signs of rejection or bearish confirmation (e.g., a bearish candlestick pattern, divergence, or weakening momentum) upon reaching the pink zone, it could provide an opportunity to enter a short position in alignment with the prevailing downtrend.
Risk Management: Use a stop loss just above the pink resistance zone to manage risk in case of a breakout.
This approach combines disciplined risk management with technical analysis, ensuring that we capitalize on potential market movements while minimizing exposure to unexpected reversals.
At the moment, the price is still far from this resistance zone. However, our strategy is to prepare for a potential scenario where the price retraces back to this area. If the price reaches the pink zone, there is a strong likelihood that sellers could return, resuming the downtrend.
Trading Plan:
Long Positions: For traders holding long positions, this resistance zone is an excellent area to consider reducing positions to secure profits, as a rejection from this level could lead to a decline.
Short Positions: If the price shows signs of rejection or bearish confirmation (e.g., a bearish candlestick pattern, divergence, or weakening momentum) upon reaching the pink zone, it could provide an opportunity to enter a short position in alignment with the prevailing downtrend.
Risk Management: Use a stop loss just above the pink resistance zone to manage risk in case of a breakout.
This approach combines disciplined risk management with technical analysis, ensuring that we capitalize on potential market movements while minimizing exposure to unexpected reversals.
TURTLE TRADER 7
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.