Good evening traders! June is officially in the books after todays closure with next market open set to commence fresh candles across the board! (Get it, fresh candles?..) ANYWAY, here's what to look for next with this AUD pair-
At the Moment, we should be eying 0.7011 as the key level here. Bulls must firmly hold this price as support in order to continue climbing further away from the three year lows seen just two weeks ago (Not counting the bizarre "Flash Crash" wick from January that also brought price down to these lows). If it does hold, the next hurdle to the upside would be seen at my approaching descending daily trend line, with its potential touch being the fourth one on this trend line and definitely the most critical.
Worth keeping an eye on from a fundamental perspective is the upcoming RBA (Reserve bank of Australia) Interest rate decision this upcoming Tuesday. If they do in fact cut rates as many expect they will, it'll all but guarantee much lower downside potential to an already weak Aussie Dollar. As far as how low price actually reaches will be determined by the Feds upcoming rate decision of their own, which is set to be announced July 31st.
On an entry point of view, I personally will be looking for a move to the downside with the ideal scenario being shown on my chart above. It makes for a nice 3:1 Risk/Reward and good potential swing trade. Entry would follow any bearish market structure formed under 0.7011, with a bearish engulfing candle being a nice way to start the week. I will be updating once I do see any of the above taking place as the week progresses!
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and just like that we have our engulfing 4H candle! perfect start to the week. Ill be waiting for more closures under 0.7011 to enter this trade, will update once I do.