US-SINO Trade Deal Could Make AUDUSD Reach 0.72500. LONG TRADE!

With the trade deal certain to be reached soon between the world's two largest economy, AUSSIE stands to benefit as CHINA usually purchase many raw materials from Australia and therefore we could see AUSSIE appreciate against many pairs. However in this case against the USD the gains might not be that high as compared to other safehaven FX pairs such as CHF and JPY.

The weekly 50 EMA on the weekly chart is acting as a potential dynamic resistance and is preventing aussie from reaching new highs against the USD. In this trade setup, the long term channel has been broken and price retraced to daily 50 EMA. The primary target of 0.72500 lies where the weekly 50 EMA is present. The price is also building a constructive uptrend on the daily charts, where beneath the trendline we have our stop loss set. Below are the trade entry and exit information:

Instant entry: at around 0.71300 level
Stop loss: 0.70150
Take profit: 0.72500
RR: 1:1

Technical picture for this pair is pretty good however in the coming days it will be safe to monitor the fundamental aspects of this pair and see how it performs. shall there be any updates i will update in the thread below. please leave a LIKE if you find my ideas useful and follow me if you want to receive further trade ideas in the future. cheers

Trade closed manually:

Close the trade. Many crucial support were broken after the CPI missed expectations. In the future we will look to sell this pair