AUD/USD:
Date: 17 October, 2016
H4 Graph: Short Trend
After 4 lower highs on the bigger picture are in fact in, now 3rd lower high has been formed again. The price has stopped going up right at the FIB 61,8% and horizontal resistance zone 0.76200-0.764300. We also can see the formation of a diagonal resistance here with 3 lower highs. Possible good levels for new short positions. The formation of a lower lows and lower highs - Short Trend
Price Action: Engulfing bar at a levels of strong diagonal and horizontal resistance - signal for short.
Fundamental: With the speculation of the FED increasing interest rates before the end of this year, the USD has been gaining strenght and its been going higher against all other currencies.
Alternative Scenario: If the price breaks up and continue up above the previous high and above the diagonal resistance, this will cancel the bearish view.
Technical Indicator:
DEM (14): - Close to the overbought zone but it still has not turned down for short
Price for Entry Short around: 0,76200
SL: 0.76550
Jr. Trader - S. Fuchedzhiev
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