The rally is shaping up. It looks to be targeting the original breakdown area, which coincides with the .618% retracement level of the decline from 0710ish. If the pullback of the rally from 0480ish to 0580ish level stops about the 0530ish level, the 50% point, then two equal legs will be at 0620ish.
“Ish” is a very technical term for precise nuclear type work. Don’t let the precision fool you, I actually don’t know what the heck I’m doing!
Given this, unless something changes on the way up, an order is going in to short AUD/USD at $1.0615 (0617 is the line chart number while the bars come in at 0621) which should be just a tad bit early to give a little cushion. Stop point? Don’t have one. Drop dead stop level for now is over the peak at $1.0715 (EDIT 05/24 12:20 adjusted stop point for spread). A tad bit wide so only 1 unit to start this trade. Any clear breakdown of a lower trendline and stops get dropped to just over any lower high point. Also, another unit will be thrown short for a total of 2 units on that lower line break if it happens. A third is contemplated at the time the 2nd goes in but will play that when (if) the time comes.
What was the lower target again? If this is what I think it is, I’m not even going to limit this trade. Will play it by ear so no limit for now. Don’t forget the weekly picture – it could be huge.
The wicked AUD/USD chart (keep in mind that I’m so full of BS that this may not even be close):