After breaking the support trend line, AUDUSD is currently in need of a minor correction. The current price action suggests that a pullback and retest of the trend line is likely to occur. If the price is rejected at this key zone, I will wait for a bearish engulfing candle before considering a sell position, particularly if it breaks the support zone marked in yellow.
However, if the price continues to rally up, my bearish bias will be invalidated. It’s important to monitor the market closely and be prepared to adjust your trading strategy accordingly.
What are your thoughts on this? Feel free to share your comments below.