Forex Trade Setups Oct. 11th
AUDUSD – Failed Breakout – Breakdown Now?
After failing to brakeout and hold above the .9900 and 38.2% fib of the major downmove (.9912) from 1.0775 – .9400 level, the pair has sold off quite aggressively over the last two 4hr bars forming a lower top in the process suggesting the pair is likely turning in the short term.
On top of all this, the pair is breaking below the 20ema for the first time since Oct. 5th which has held the pair up nicely so this is also communicating a likely further breakdown short term. Traders can look for pullbacks to the 20ema on the 4hr time frame should this pair close below the 20ema. Any pullback to the 20ema after the close below could be a good trigger to get short with tight stops above the .9900 level which was support and could not be resistance.
However should the pair fail to close below the 20ema and simply reject off of it on this current candle, watch the next candle for either a break/close below or a rejection off of it which would likely signal a short term rise.
Check out a great article we wrote on Forex Trading Lessons from the Archery Range.
Also make sure to share your comments below and click the ‘tweet’ and ‘like’ buttons below.
For those of you looking to take your price action trading to the next level, check out our Advanced Price Action & Pivot Point Course where you will learn rule-based systems and 10 years of quantitative proprietary data on price action setups and pivot points for intraday trading. You also get lifetime access to the course, a library of knowledge on our traders forum, training videos and a private follow up lesson with me. To learn more, check out our Online Forex Course page.
Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.
Want to Learn Price Action Strategies for Trading Forex?
Sign Up for our Monthly Newsletter and Get our FREE E-Book