AUDUSD - the perfect example for the importance of patience

Yesterday, we pointed to downside potential after the distribution pattern (I'll link the idea below). However, the AUDUSD never traded below the last support at 0.70 so there was no signal given to enter a short. The following Fed talks that lead to a USD rally would have trapped traders who entered prematurely. Traders who remained patient and waited for a confirmed break of the support were not affected.

This scenario shows perfectly why waiting for confirmation and why not trading before the actual signal occured is of great importance.

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A break above 0.72 could very likely complete the Fibonacci sequence and send prices higher to 0.73