Potential AUDUSD Long Reentry Possibility?!Hello Traders,
AUDUSD is in a big triangle pattern in the daily chart, as you can see in the first chart.
It was flirting with the last significant breakout highs at around 0.7536. Where also the 200-day moving average comes across.
The main idea is now that the market should at least bounce from its current daily levels. Therefore, we waited last week for a confirmation in the 1-hour chart. As a matter of fact, the 1-hour chart gave as an ending diagonal. With a breakout and a retest of this broken falling trend line, as you can see in the second chart, we decided to take a long position at 0.7555 with a stop loss of 0.75688 and an initial target of the last daily highs at 0.7715.
It is an approx. 5:1 risk to reward ratio, which is pretty good. The trade is currently with +70 Pips in profit.
But we will wait now for another consolidation pattern, like projected in the second chart. With a break again of its potential consolidation, we will take another long position to scale into our existing position. In case of a scale in we will put our stop-loss from the first position to break even. We will keep you updated.
We wish you a successful start in this upcoming week and please do use a tested strategy, this is just our opinion and we don't share OUR exact multi-timeframe strategy here. This will just give a sense of market direction.
Cheers
