AUD/USD: downtrend, price below resistance, probable decrease

01.04.2016 / 10:52

Rating:

AUD/USD: Dayly: Downtrend and short-term correction

Fibonacci correction up to 23.6% of the downtrend

price action: Pin bar at levels of resistance

False break over 0.7678 and price goes under it - negative formation, which is traded differently as false break, turtles soup, trap for specialist etc.

Whit this formation there is two options:

Entry if price goes under the base of the pin bar or 0.7633

Entry after a 50% correction of the pin bar around 0.7676 to minimize risk with small stop loss. In this case this one is better because of coming volatility which will give better levels for entry.

Divergence: higher top of price , lower top for indicators: RSI, DeM - negative signal

Indicators:

DeM went under 0.7 after divergence- negative signal

Today we wait for Nonfarm Payrolls, which can lead to volatility so the volume should be less that normal with a bigger stop loss levels.

Stefan D. Angelov- Head of Stocks Trading

Varchev Traders

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AUD/USD: downtrend, price below resistance, probable decrease

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