Hi Traders! AUDJPY bearish setup forming at the moment. A detailed analysis of this sell opportunity is as follows:
AUDJPY H4 Chart:
On the H4 chart we have a critical zone that has formed based on the fibo levels of the cycles. In addition to this we also have a good downtrend line that has formed which coincides with this critical zone and the price which is respecting this dynamic resistance so far is currently nearing it. If we didn’t get a valid breakout here we may then expect the price to respect this downtrend line and move lower again. We may now look for bearish setups with bearish evidences on lower timeframes in order to join the bears.
AUDJPY H1 Chart:
On the H1 chart the price is moving inside a triangle pattern and is respecting it so far. Currently the price is nearing the middle of this pattern, there are two possible scenarios from here. We may now expect the price to move lower from the current zone and break below the bottom of this triangle pattern, we may then start looking for sells with more bearish evidences. Or alternatively we may expect one more push higher towards the critical zone, we may then start looking for sells with more bearish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Not sure how to spot reversals (bounces)? Not sure how to spot breakouts?
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Yours to your success