FX:AUDUSD Australian Dollar / U.S. Dollar
Have a look at the snapshot above for AUDUSD weekly TF. It shows the levels represented by red horizontal lines. At the moment the price HIT 0.67000 level and is bouncing around near that level, suggesting a BOTTOM or The support has been respected (well at least for now).
The main chart, shows AUDUSD on daily TF where as you can see the daily candles have started to form a range. If this range gets broken the price would aim for daily 50 . Now for this to happen we need the daily candle to breakout and close above the range (note: 4hr candle would provide an early signal but there are high chances that it may be a fakeout!). After the breakout happens and gets confirmed we can opt to take this pair LONG and target the daily 50 . However trading such a volatile pair on daily TF is risky as it would trigger the SL or TP quickly due to unexpected news in the current fundamental market.
Therefore sticking to the weekly TF is the best option and safest based on the current market situation. For those of you who are eager to take this trade on daily TF to target the DAILY , please exercise caution and do it at your own risk!
Now getting back to the technical picture, we need to see the daily candle close convincingly above the daily 50 so we can opt to take this pair LONG towards the 0.695000 level where the descending line of the channel is present plus the WEEKLY 50 .
Fundamentally, we have seen the escalation of the tradewar which has heavy effects on the AUSSIE. However we have also seen that a china is ready to start talks again with the U.S giving some hopes to the market. Due to this reason i feel the AUSSIE can target 0.69500 and then from thereafter the free fall would begin again.
Shall there be any updates about the trade entry, i will provide them in a new post. this just represents my analysis and outlook of this pair.