Breakouts are popular among traders. However they can be so punishing if you get it wrong. Why? For the fact that buy high to sell higher means that you have bought at the worst price if you are wrong. And because false breaks are really common.
Well AUDUSD is at this point. Break or fade?
AUDUSD bullish breakout or fade-out
For bulls to play the break, look for a bull flag on the 4-hour chart that builds base at the yellow zone. Such a consolidation will allow late bulls to find low risk entry points for going long.
For bears to play the fade, 1. get a reversal candlestick pattern on day chart or 2. wait for reversal chart pattern on lower time-frames.
AUDUSD has now moved into a 1-hour and 4-hour river. Any pullbacks would be likely shorting levels as long as we can find confluence and good fib-R levels. Shorting is the direction considering the setup in the daily charts i.e. down trend, at resistance.