AUDUSD: Long Term Bullish Support Line Regained Today
The daily candle chart below shows price history of the Australian Dollar (AUD) versus the United States Dollar (USD). This pair is known as the AUDUSD, and is trading near .9343 near fresh session highs today (of .9346 as of publication).
The bullish momentum of the last few weeks has enables the pair to breaks above a long term bullish support line that had failed in recent months, thus making AUDUSD technically more bullish now - if this line can now act as support.
Over the last ten trading sessions including today, the pair had attempted to breach this long term line -which was acting as resistance - and finally succumbed today to the bullish price action.
On the other hand, support over those last ten sessions was building on a medium term bearish line (point 6 in red on chart), therefore even if a pullback happens from here there should still be support above .9200, and as far as upside - .9450 could be next.
Last time the pair was covered in this series a higher-high was expected as a prior bullish target was overcome for the second time.
Below are examples of how to trade a bullish continuation or a bearish reversal:
1. Bullish Buy Entry Order
Create a "Buy Entry Stop" @.9360 with a Limit to take profit @.9395 and a stop-loss @.9135 Risk/Reward Summary: Limit risk = +35 pips profit / (-25) Stop-loss risk = Gain to Loss ratio = 1.40
2. Bearish Sell Entry Order
Create a "Sell Entry Stop" @ .9299 with a Limit to take profit @ .9275 and a stop-loss @ .9319 Risk/Reward Summary: Limit risk = +24 pips profit / (-20) Stop-loss risk = Gain to Loss Ratio = 1.20
Medium Term Chart with Daily Candles: