AUDUSD – a pair susceptible to economic news, highly dependent on exports of raw materials to China. The last not very good information on the US-CHINA trade talks and Monday’s information on the threat of further duties on imports from China being imposed by the US government on Friday (10.05) caused further decreases in the already heavily weakened Australian dollar, which has been in a downward trend since the beginning of 2018.
I added an indicator Envelopes on H1 chart ( it is available in MT4 set). There is a certain regularity, the price quite often respects the averages, maintaining its extremes within the range of the band determined by this indicator.
Taking into account that we will play against a strong trend, Stop-Loss would have to be just below the demand zone and the lower average, i.e. around 0.6950, while any TP would have to be below the supply zone 0.7030.