FX.co ★ Trading idea for AUD/USD

AUD / USD closed significantly lower last Friday. This upset bullish traders whose risks are now concentrated below 0.72200 and 0.72. And this morning, the pair pulled back to the 50% retracement level, opening opportunities to take short positions.

To be precise, since there is a three-wave pattern (ABC) where wave A represents the selling pressure last Friday, traders can set up short positions to the 50% fibonacci retracement level - 0.72750. Stop loss should be laid at 0.73, and then take profit on the breakdown of 0.72200 and 0.72000.

The risk/reward ratio of this transaction is 2: 1.

This analysis is based on Price Action and Stop Hunting strategies.

Good luck and have a nice day!