Possible Trade Setup Forming on AUD/USD – March 11, 2013

We may have a short trade coming up on AUD/USD, but it’s not a sure thing yet.

We’ve had a strong downwards trend on this pair since mid January, with a very strong upper trendline, but that changed on March 5th when the trendline was broken. The overall direction of the trend has held, but the break caused the formation of a new upper trendline, and we may have a short trade coming up off that line.

Here is a zoomed-out screenshot of our chart…

possible audusd short trade setup

You can see both the old and new trendline, and notice that the new trendline has 6 strong bounces! Even though it’s less than a week old I believe that makes this a very strong line.

Here’s our possible trade area zoomed in…

120310-audusdh4-zoom

I’m hoping for a bounce off the trendline, accompanied by some reversal candles.

You’ll see there’s also some short-term S&R above the trendline. If price it does break through the trendline I’ll also be watching for reversal signs around that S&R zone.

As always make sure you’ve read through my trading method before you take any trades. This is a Forex education website, not a full-blow signal service, so I’ll leave it up to you to determine the stoploss and takeprofit levels (hint: you can learn how to do that if you read through my method).

I want you to learn to trade for yourself, but I’m happy to answer any questions or give you my thoughts on your stop and profit levels. Just leave a comment below or in the forums.

Phil

By |2015-11-05T22:20:09+00:00March 11th, 2013|Live Trades, Phil's Forex Blog|0 Comments
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