AUDUSD; Looking for lower high or bottom forming?
The Australian Dollar has some more room up shortterm as it looks likely to test the top end of the bearchannel around 0.75500 currently. Chances are that bears will be looking there to create another lower high to resume bearish momentum.
Support tested against the lower 0.7300's recently sees some better support however as it stands for a better bottom from earlier this year. Below there, 0.71600 was holding as a floor back in 2016 (tested two times). So, in a wider view, this will be difficult to crack.
With today's hammer it might pay off to establish some longs with 0.75500 as a shortterm target, but in a wider view a trip back to 0.8000 might be in the cards and fits in a longer term trading range.
Ofcourse, for the latter idea, a higher high is needed for confirmation (0.74848) followed by a downtrendline break (over 0.75500).
Support tested against the lower 0.7300's recently sees some better support however as it stands for a better bottom from earlier this year. Below there, 0.71600 was holding as a floor back in 2016 (tested two times). So, in a wider view, this will be difficult to crack.
With today's hammer it might pay off to establish some longs with 0.75500 as a shortterm target, but in a wider view a trip back to 0.8000 might be in the cards and fits in a longer term trading range.
Ofcourse, for the latter idea, a higher high is needed for confirmation (0.74848) followed by a downtrendline break (over 0.75500).