Is the Aussie battler about to make a comeback?
On April 21, AUDUSD topped out at 0.7835, just shy of a big Fibonacci level at 0.7848. It's been selling off more or less in a straight line since then — until last week anyway.
Last Tuesday it got down to 0.7144. Yesterday it hit 0.7149 and then found buyers. The high between these two lows is/was 0.7245, a level that has been tested since, in fact we're trading here as I write.
There is another resistance level to worry about, at 0.7277-85, a Marabuzo line.
The chart suggests that if/when AUDUSD gets above 0.7277, there's scope to 0.7408 at least.
Management and risk description
Initial risk is under 50 ticks. Stop can be moved to entry once 50 ticks onside.
Entry: Buy half above 0.7245, add on a move through 0.7280
Stop: Below 0.7210 initially
Targets: 0.7400 and 0.7490
Time horizon: 1-2 weeks
AUDUSD daily chart
— Edited by John Acher
Non-independent investment research disclaimer applies. Read more