A retest of the previous structure to trigger a short entry
Fundamentally Aussie is believed to be overvalued against USD according to its Central Bank Governor, Stevens.
Until the market realizes this fact and starts making lower lows in the Daily timeframe, I stay bearish on this pair hoping to be on the right side of the market.
Technically we've seen lower lows starting this week and have made our way to the previous support lows today.
Then the market bounced and did a retest of the previous resistant to the pip and bounced again.
The stop loss is placed above the top of the double top.
Until the market realizes this fact and starts making lower lows in the Daily timeframe, I stay bearish on this pair hoping to be on the right side of the market.
Technically we've seen lower lows starting this week and have made our way to the previous support lows today.
Then the market bounced and did a retest of the previous resistant to the pip and bounced again.
- For those who are fascinated with ratios, the double top formed on the 0.5 retracement of the latest minor top
- Time-wise, the potential correction has taken more time to form albeit it merely made a double top (sign of a correction)
The stop loss is placed above the top of the double top.