AUD/USD produced a bearish engulfing candle yesterday. The H1 chart shows that the price made a breakout at yesterday’s lowest low and traded below the level for some candles. The price may make a bullish reversal now. If the price goes up to breakout level and produces a bearish reversal candle, the sellers may get an opportunity to go short in the pair.
Chart 1 AUD/USD H1 Chart
The chart shows that the price made a breakout at the level of 0.70930. It then consolidated around the level and continued its bearish move. As of writing, the price has been bullish in the last candle. If it comes out as a bullish reversal candle, the price may head towards the North to make a bullish correction. The level of 0.70930 may work as a level of resistance. If the level produces a bearish reversal candle, the sellers may go short below the level of 0.70770.
Trade Summary:
Entry: Sell below 0.70770
Stop Loss: Above 0.70770
Take Profit 1: 0.70500
Take Profit 2: 0.70400
Take Profit 3: 0.70265