I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Sell AUD/USD
With Big Ben Bernizzy emphasizing that his Fed mafia's primay focus remains on containing inflation, this pretty much killed any hopes of an interest rate cut in the near future. Add the fact that US GDP numbers came out higher than intially reported, I think we have a nice concoction of fundamental goodies to cause a short-term correction on this pair's recent rally.
Stochastic has been "overbought" for awhile now. It also has "turned over" and looks to be headed below its "overbought" region. If this pair does sink, I anticipate it falling to it .382 Fibonacci retracement level, which is around 7950, especially since that was the pair's most recent resistance-turned-support area.
On a faster chart, look how many times the pair tested the 8100 handle but couldn't stay above it. The AUD/USD has been basically been trading sideways between 8100 and 8050 but notice how the oscillator has been drifting lower making lower highs. I see this as bulls losing steam.
I believe this pair is topping out and look to short. I'd go short now but I think there's a chance that traders will test the 8100 handle one last time. I'm going to sell at 8100. My stop loss (SL) will be at 8140. Pretty tight. Resistance at 8100 either holds or not. This is not a trade that I'm giving breathing room. My profit target (PT) will be 7950, for reasons which I explained earlier. I will move my stop to breakeven if price falls to 7970.
Sell AUD/USD @ 8100 | SL: 8140 | PT: 7950
