Selling Strategy Above 2025 High for AUD/USD
📉 AUD/USD – 2H Chart Analysis
🕒 Date: June 16, 2025 | Timeframe: 2H
🔔 Trade Idea: Implementing Two Sell Limits at Key Resistance Points
🔹 Market Context
The market is currently maneuvering within a rising broadening wedge pattern, delineated by intersecting white and blue trendlines. This pattern is significant as it indicates a phase of potential indecision within the market, where price action may become volatile.
The Australian Dollar to U.S. Dollar (AUD/USD) pairing has witnessed a vigorous upward movement, now retracing toward its upper wedge resistance. This resistance corresponds with the 2025 high, a level that historically has curtailed bullish attempts, acting as a ceiling for upward momentum.
Price is now in proximity to a previous supply zone, another critical area where selling pressure has been prevalent.
🔻 Sell Limit Setup 1
- Entry: 0.65400
- Stop Loss (SL): 0.6584
- Take Profit (TP): 0.6503
- Risk to Reward (R:R): ≈ 1
This setup focuses on fading the rally as it meets resistance. By entering at this point, traders anticipate a reversal or pause in bullish momentum. The setup is aligned with existing Exponential Moving Average (EMA) structures and reflects intraday market exhaustion, where sellers might gain control as buyers dwindle.
🔻 Sell Limit Setup 2
- Entry: 0.6550
- Stop Loss (SL): 0.6584
- Take Profit (TP): 0.6499
- Risk to Reward (R:R): ≈ 2
The second setup enters at a slightly higher point, which is within a wick zone. This is considered a liquidity trap where purchase orders are likely concentrated. This setup anticipates a potential false breakout above the known structure, serving as an advantageous point for short positions. With the stop loss placed above a key swing high, traders benefit from a clearer invalidation point if the market shifts unexpectedly.
Using this setup allows for an aggressive short position due to its smaller stop loss, offering a better risk-reward ratio.
Overall, both setups provide distinct entry strategies aimed at capturing potential downside movement in the pair, with attention to key resistance levels and market patterns.
Incorporating these strategies can be beneficial for traders who note the current technical signs of market resistance, including the potential for turning around at significant historical highs. It is crucial to monitor accompanying indicators, such as the EMA and other technical analysis tools, to complement these setups.
Below is an illustrative example to provide a clearer visual understanding of the discussed strategies.
