AUDUSD was unable to break above the 0.6780 level of strong upside resistance after the recent strong bounce from 0.6560
Only a confirmed break above 0.6800 again will lead to an extension higher but the probability for this, after the recent consolidation break below 0.6560, is low.
This short-term confirmed break below 0.6560 after the resistance rejection is leading to a bearish swing lower to 0.6350 again, which is now a medium-term uptrend line.
This could be a medium-term low-risk short trade, and we will not search for long trade entries at this point.
You can take the short trade u with the stop loss just above 0.6600 as we see a higher probability for this swing reversal lower to continue. By placing this trade your RR ratio is around 2. In the case, you are stopped you can reverse your trade to a long trade, especially in the case of a confirmed break above 0.6800. The first target is 0.6340 but it may go beyond that to 0.6200 and lower.
