AUDUSD-4H--Bearish Setup

12 בינו׳ 2021

I have been watching this pair for a couple weeks now. I believe we are heading in to a major correction phase in the AUDUSD pair. The pair has just finished it's 5-Wave Impulse up beginning back in March and has begun, what I believe is, it's corrective phase. This correction will be a minimum of the largest corrections of Wave 2/4 from the preceding impulse, which I predict to be around 400 pips. This move will drop the pair to the .74 region where it should find initial support from the Top of Wave 3 in the impulse wave. Also, we have another signal confirming our bearish bias. At the top of Wave 5, we have formed the Head of our Head and Shoulders pattern. It is currently forming the right shoulder and my prediction will be about a 160 pip drop once the neckline is crossed. That will drop us to the .752 range for initial support. We may consolidate for a short period before resuming the rest of the overall correction. As indicated by my chart, I have already been in a short position for initial PT around the .763 area.

Please do your own due diligence and follow your trading plan. This is only my analysis and prediction of what I am seeing on this chart.