For this week I am looking to sell the AUDUSD.
This pair has shown a confluence of a down trend when combining technical analysis.
Symmetrical triangle in an uptrend
This pair has curve a Symmetrical triangle in an up trend as seen on the Daily chart. A Symmetrical triangle is formed by two intersecting trend lines of similar slope converging at a point called the apex. This coiling of price between support and resistance is called a consolidation. Usually, within the first 2/3 of the triangle, a breakout occurs either above trendline resistance or below trendline support as either the sellers or buyers take control. Once a triangle is identified on the chart, traders will wait for a breakout either above the resistance trendline or below support. After a breakout is confirmed with either a closed candle above resistance or below support a stop is placed approximately 10 pips below/above the last swing low/high of the triangle. A profit limit equal to the height of the triangle is then placed.
Head and Shoulders pattern within an symmetrical triangle
Often when you look closely at price action within a range, you will likely see signs of where price action is heading. On the daily chart of this pair, the right shoulder has already formed now heading down to trendline support and neckline of the head and shoulders pattern at 0.74447. We have already seen a 5/8 ema cross at the right shoulder and price has broken below the Monthly pivot point at 0.7610. On the Daily time frame i am waiting for a nicer retracement to the MPP and will be looking to sell from there. Alternatively i will wait for the break of the trendline support and retest to join the move to the down side.
Price already broken through the neckline of the Head and shoulders pattern
On the H4 charts, Price already broken through the neckline of the Head and shoulders pattern, retested the neckline and closed below the DPP. The 21 EMA has crossed bellow the 55 ema confirming down trend. Price action could pull back for a 3rd chance via a retest of the neckline or Fib 38.2%, 50%, 61.8% retracement which is where I am looking join the move to the downside.
On the H1 timeframe same as H4
On this time frame i am looking for the same entry reasons as the H4 mentioned above.