AUD/USD: Following an uptrend, which lasted for several months, the pair began to decrease back a few sessions ago by crossing a support level at 1.0002 and clearly closing below it.
A resistance level on 0.9731 was crossed and during yesterday’s trading session, and clearly closed above it. For several sessions, the pair is on its way to the next resistance on the daily graph at 0.9931. During last session that resistance was crossed as well and visibly closed above it.
Currently, a “Long” trade is not an option since the pair requires a little correction in order to confirm the uptrend and the opportunity created. Two options are possible:
1. The pair is corrected but did not cross back the resistance of 0.9931. After the correction we suggest the identification of an increasing configuration on 1H graph.
2. A vain breach of the 0.9931 is done downward, immediately followed by a new increase, and creates the opportunity to go “Long”
Our analyses suggest the creation of such an opportunity during the tomorrow’s session or the following day.
Following an uptrend, which lasted for several months, the pair began to decrease back a few sessions ago by crossing a support level at 1.0002 and clearly closing below it.
Currently, the pair is making its way to the following support on the daily graph at 0.9661. When the pair will reach that support, it should be analyzed with the usual tools:
1) Test of the support: Indication of close reversal, potential for “Long” trades.
2) Stop on the level. It could be better waiting for a “Parking” of about a session and a half, and then entering a “Long” order.
3) Clear and sharp breach of the support : It could be safer waiting for a small correction and after the identification of a decreasing configuration on 1H graph, go “Short” along with the new trend.
Have a profitable day!
Real – Forex team