Four Trade Setups for today: AUDUSD major Dragonfly Doji at support hints at a bullish bounce. While, EURAUD, USDCAD, and Gold might be reversing.
Trade Setup 1: AUDUSD Long
AUDUSD has formed a major Dragonfly Doji candlestick pattern at the major swing low and long-term support level at 1.6745. I expect the price to make a bullish bounce in the coming weeks. Targeting 0.6910 then the main falling trend line. However, the low of the Doji candle should remain intact for this trade setup to remain valid.
Trade Setup 2: USDCAD Short
The USDCAD has found resistance at the 200-day simple moving average, meanwhile, RSI hit overbought. Usually, RSI overbought signals form well in sideways trends. And also overbought signals are good bearish signals within the context of a downtrend. Therefore, I am looking for a retest of 1.3070 areas. However, I will short on an upside pullback for a better risk-to-reward ratio or time my entry on the four-hour time frame.
Trade Setup 3: EURAUD Short
EURAUD is showing strong bearish reversal signs as the price failed to maintain trading above the main long-term resistance at the 1.6550-1.6570 area. Forming bearish Gravestone Doji candlestick pattern. Meanwhile, RSI hit overbought. I will look to short a bit higher at that resistance area, as the price is likely to correct lower in the coming days, targeting 1.6235 then the main rising trend line.
Trade Setup 4: Gold Short
Gold had a strong rally last week. But the price has hit a long-term resistance in the 1520-1535 area. Therefore, we could see a short-term correction soon. Alternatively, if we break that resistance, we may see a continuation above 1600. This trade setup requires a four-hour chart confirmation before taking a short.