AUD/USD – Sell Trade At Corrective Phase Resistance In Heavy Profit (1hr chart)
Late last week the AUD/USD formed a corrective price action phase where it triple tapped the resistance around 7350. I sold at this level with a 50 pip stop assuming the bear trend would resume.
This turned out to be correct with the sell trade now in heavy profit at over +221 pips and +4R. This demonstrates the power of not trading with confirmation as you would have missed this trade entirely.
In fact no 1-2 bar combination will ever represent ‘confirmation’ in such a volatile environment.
Currently I have my SL around +100 pips, so at least +2R locked in, but am expecting further losses. My first target is the Monday lows around 7050. If this collapses, then my next target will be 7K and 6950 for a potential +400 pips of profit and +8R.
For now I’m remaining bearish while below 7250 on a daily closing basis.