The AUDUSD has rallied from its recent low as visible in this H4 chart. The pair ran into heavy resistance as it formed a triple top formation. The first part of the triple top formation allowed this pair to break down to its 100 DMA before starting a rally that formed the second top which saw its correction stopped by the rising support line that allowed this pair to form its triple top. The next correction may cause a breakdown back to the 100 DMA.
MACD shows that momentum has faded through each top and it continues to fade. RSI has followed the same pattern and showed a contraction as the pair reached is triple top. This pair has several bearish pressures acting on it.
We recommend taking a short position at 1.0375 with a second entry point at 1.0460. Should this pair breach 1.0400 we recommend hedging the initial position with a long at 1.0400 before adding to existing short positions.
Traders who wish to close this trade at a loss are advised to place their stop loss level at 1.0460. We do not use stop loss levels and will execute this trade as mentioned. Place your take profit level at 1.0300.
