The price of AUD/USD is on the very good level which has several signals pointing the price could find its way down to 0.73305.
Recently the pair had reached 0.74813 level which was a strong resistance. And the price break above, but it seems the breakout was a false one.
The next day it closed below 0.74813 level with a bearish engulfing candle.
The candle formed right on the resistance level and the highest price it reached was close to an uptrend resistance line.
The next resistance at 0.75945 is even stronger resistance, and for the best entry conditions it would be great to see the price reaching the area 0.75580 – 0.75945. That area would give more selling pressure.
With the uptrend resistance, horizontal resistance and bearish engulfing candle we have a Crab harmonic pattern that suggests the price will move down.
So, for the current market status we have a bunch of trading signals the price will move down.
The stop loss for the trade that is available on the chart is above 0.76100 which is above the previous high we had on 24.06.2021.
The first profit target is close to the first support level at 0.74059.
I would pay attention to have a profit target at 0.74258 because that price is more likely to be reached at first.
The second profit target is at 0.73050, but I would put the exit point close to 0.73500 because the price reached that level more easily in the past.
With Risk:Reward ratio of 4,46 this trading opportunity gives a good profitability chance for trading.
Harmonic Patterns Cheat Sheet
All Harmonic Patterns on one place with important tips for trading.