Trade of the day: Bullish AUDUSD

For three consecutive days has found support and traded above the 50% FiB. level of the Fibonnaci retracement drawn from the May 2017 swing low at the 0.73293 price level to the swing high at the 0.81261 level printed in Sept. 2017 (see Daily chart Fig 1).

Yesterday, price pushed through a support zone at the psychological 0.7800 level as the USDollar was driven downwards after the release of the FOMC minutes.The Fed officials are still positive with hiking interest rates, however most still fear current low inflation might not just be transitionary hence, sending a mixed result which the market currently is seeing as a ‘dovish stance’.

Fig 1 AUDUSD D1 (10-12-2017 0938)
Fig 1: D1 AUD/USD

From the hourly chart below, the bias is bullish with profit taking at a conservative zone at 0.78761. Another profit taking level is at the shorter term 50.0% FIB level [ Swing High 0.81058 – Swing Low 0.77341] at 0.79200.
Conservative and agressive stop losses could be set below the longer term 50% FIB level at 0.77277 and below the 0.7800 support zone around 0.77781 (dotted line).

Fig 2 AUDUSD H1 (10-12-2017 0953)
Fig 2: H1 AUD/USD

Alternatively, a reverse in price value below the aforementioned support zones might open room for a bearish momentum.

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