Trade Idea: AUDCHF Bears Try To Break Through Support
Important note on charts:
It’s imperative to your trading success, you are trading with a broker that offers “New York Close Forex Charts” where each daily candle opens and closes at 5 pm EST. This is essential with trading price action correctly.
Trade Setup Disclaimer:
All my trade setups provided, is not advice or a recommendation to trade or invest. It is solely for educational and general information only.
Don’t blindly buy or sell the Forex markets discussed in this trade setup. Do your own research and always be aware of the risks and rewards.
Potential Trade Setup: AUDCHF Bears Try To Break Through Support
All charts I provide are of the Daily time frame unless stated otherwise.
Key Levels: Current support 0.6900 with the next lower support at 0.6644
Price Action Signal: Awaiting a retest of the broken key level with a price action signal
Chart Notes: The AUDCHF has come back into a long time level of support. With a third test, current price suggests a breakout lower.
With a bearish bias that remains intact, if price can hold below the key level.
Potential Trade Idea:
I am considering selling this pair if the broken key level of 0.6900 now holds as a new resistance.
I will be looking for a strong bounce of this key level with a nice bearish reversal candlestick pattern.
This being either a one candle retest or a swing retest for a entry.
This setup has plenty of free space, giving the trade idea room to head lower for a very good risk to reward.
I will be looking for a first potential target being a 1-1.
Then aiming for a 2nd target at the next Daily low from the spike made on the 3rd January this year.
I can’t stress enough here, that patient and discipline is the key to any successful trader.
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Now is your turn:
How are you planning this setup? What are you looking for to catch the next bearish move with this pair? Just leave any question or comments below.
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