Forex AUD / USD signal: Start of consolidation for OANDA: AUDUSD by SmoothJB

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I wrote last Tuesday that a long operation usually doesn’t sound like a good idea, and the resistance level At 0.7430 it looked pretty solid so it could provide a short trade – I was willing to sell if we got a firm reversal of that level which we did.

The picture now shows that the former large swings for this currency pair are starting to tighten, with the first signs of a consolidation pattern appearing between 0.7321 and 0.7390. The Reserve Bank of Australia released the minutes of its last monthly meeting a few hours ago, with the key to take with being that the RBA does not expect to raise its interest rate in 2022. As expected, this had a small dovetailing effect on the Aussie, but nothing really technically significant beyond a period of time. scalping type.

If I’m right about this atmosphere of consolidation, the best opportunities to come in this currency pair are likely to be either a long trade from a rebound at 0.7321 or a short trade from 0.7390 to new. I prefer a short trade like the US dollar is long term uptrend , which means that a short trade should be more likely to produce a better result.

Short business ideas

Short entry after a bearish reversal of the price action over the H1 period immediately after the next contact of 0.7390 or 0.7430.

Place the stop loss 1 pip above the local swing high.

Move the stop loss to break even once the trade is 20 pips of profit.

Remove 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position surf.

Long business idea

Long entry following a bullish Reversal of the price action over the H1 period immediately at the next contact of 0.7321 or 0.7267.

Place the stop loss 1 pip below the local swing low.

Move the stop loss to break even once the trade is 20 pips of profit.

Remove 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position surf.

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