AUD/USD 1H - Short SetupAUD/USDOANDA:AUDUSDQutabBasheerMy idea is to look for a short position on AUD/USD from the current resistance area around 0.7214–0.7219. Price has made a strong recovery from the 0.7120 area and formed a rounded/U-shaped recovery. However, after reaching the previous resistance zone around 0.7215–0.7220, price started to struggle and is consolidating below the highs. The main reason I am considering a short is the bearish divergence on RSI. Price has made a retest of the highs, while RSI is making lower highs. This suggests that the bullish momentum is weakening even though price is still near the resistance. I am also watching the emotional wick around the 0.7170–0.7180 area. This level can act as an important reaction zone if price starts moving lower. 📉 Trade Plan Direction: Short Entry: 0.7214–0.7219 Stop Loss: Above 0.7227 Take Profit: Around 0.7174–0.7172 Risk/Reward: Approximately 1:2 or better depending on the exact entry Why I like this setup Strong resistance: Price is approaching the previous high/resistance around 0.7215–0.7220. Bearish RSI divergence: Price is testing the highs while RSI is making lower highs. Momentum is weakening: After the strong bullish move, price is now struggling to continue higher. Fibonacci levels: The downside targets line up with the Fibonacci retracement area. Risk is clearly defined: The setup becomes invalid if price breaks and holds above 0.7227. Invalidation If AUD/USD breaks above 0.7220 with strong bullish momentum and especially trades above 0.7227, I would consider the short setup invalid. The idea is not to predict the top blindly. I want to see price reject the resistance and confirm weakness before entering. #AUDUSD #Forex #TechnicalAnalysis #PriceAction #BearishDivergence #RSIDivergence #Fibonacci #Resistance #ShortSetup #TradingSetup #ForexTrading #Sarmaaya.pk