It is no surprise that after reaching a New Structure High of (~.81) that we have such a bullish move, losing about (.30%) of its value. However the previous high was @ ~.805, so we can see that price is trending to the upside overall. Price currently is magnetized by the 50% Fibonacci level being our previous structure resistance turned to support. The key level being .781 if broken we can possibly see price move to the next support level @ .775 in confluence with the 38.2% level which is a possibility. Seeing as the Aussie is currently full of bearish momentum its best to wait for good confirmation about these levels keeping their strength. If so, they provide with beautiful Risk/Reward ratios (1.98) and (4.21). Also something to consider being a break in both levels in continuation with current momentum, which could result in an overall trend reversal from bullish to bearish if the 23.6% level is broken. But if that is the case then our stop loss would pull us out at a decent price limiting potential losses.
Thank you for taking some time to read this analysis.
If you found this helpful or intriguing please like and comment.
Best wishes. - Alex
Thank you for taking some time to read this analysis.
If you found this helpful or intriguing please like and comment.
Best wishes. - Alex