Both the GBPUSD and the AUDUSD developed bearish patterns overnight by breaking to new lows. I am interested in taking both but the AUDUSD was the first to put in a nicve pullback giving me the opportunity to enter short. I took the trade at 0.7405 risking 2% of equity hoping for a return around 3:1.
The chart below is live from Tradingview and shows the break of the low on the daily chart and the potential size of the move lower, i am initially targetting a much smaller amount than this wave c move (3:1 is only at 0.7321).
Of course the trade might not work and it is possible that the pullback is not yet complete, if so I will look to sell again at a higher level, throughout the trade I will look to move the stop loss toward the entry point protecting my equity in the case that this is not the time to enter.
Probability for this trade is not high, especially as I am still expecting the USDMXN to make it lower so that the trade will become active.
THIS TRADE CLOSED FOR A 4% RETURN ON EQUITY WITH rISK REWARD = 2:1
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