Will AUDUSD pullback to 0.6670 now?
Similar to other risk assets like NZD and CAD, the Australian Dollar too took a beating this week. The reason being a massive sell-off in the stock markets and investors fleeing to safe havens.
However, I was quite surprised by the way AUDUSD closed yesterday. Price dropped to decade lows of 0.6430 and within minutes, it started coming back up and recovered more than 80 pips, which is quite big. It's possible that the movement was accelerated by a lot of SLs below 0.65 going off.
Nevertheless, the daily candle ended with a big wick at the bottom, which can't be ignored.
Also note than, price is now at the trend line(indicated in my chart), which has offered lot of support to AUDUSD in the past.
So, it's not surprising to see a pullback to the broken support area in the near future.
That being said, if I do decide to buy AUDUSD, it will be closer to the 0.6450 area to reduce the risk to a bare minimum.
However, I was quite surprised by the way AUDUSD closed yesterday. Price dropped to decade lows of 0.6430 and within minutes, it started coming back up and recovered more than 80 pips, which is quite big. It's possible that the movement was accelerated by a lot of SLs below 0.65 going off.
Nevertheless, the daily candle ended with a big wick at the bottom, which can't be ignored.
Also note than, price is now at the trend line(indicated in my chart), which has offered lot of support to AUDUSD in the past.
So, it's not surprising to see a pullback to the broken support area in the near future.
That being said, if I do decide to buy AUDUSD, it will be closer to the 0.6450 area to reduce the risk to a bare minimum.
Comment:
This set-up worked perfectly. Price dropped very close to 0.6450 and now on it's way to test the broken support