AUDUSD – SELL – 13th September 2021

AUDUSD – SELL – 13th September 2021 (Closed)

Good afternoon team,

We are taking a look at a short on the AUDUSD due to technicals and fundamentals aligning. The DXY looks set to break to the upside of an inverted head and shoulders formation which should result in a decline across USD pairs (in the favour of the USD). If you have not done so already, please read last weeks fundamental and technical report sent out on Friday via email. This outlines how fragile the global stock market is currently looking. Let me know if you have not received the report via email.

AUDUSD – Daily Chart

Technically this could be a large head and shoulders formation on the AUDUSD daily time frame. IF this plays out we could see the AUDUSD trading beneath the 0.7000 support over the coming weeks. There would need to be a significant RISK OFF move in the market for this to take place, which would indicate further downside on the SP500. This position is also supported by the setup on the DXY index.

AUDUSD 1 Hour Chart

Trade Setup: SELL Market execution, current price 0.7345, stop loss 0.7417 and take profit target 0.7105.

Stop loss: 72 pips

Take profit: 240 pips

Stop loss is positioned above the most recent swing high.

 

Trade Setup
SELL - Market Execution

Entry
0.7345

Take Profit
0.7105

Stop Loss
0.7417