Call update: AUD/USD approaching channel top, book full profits
AUD/USD short covering pushes the pair above 0.72 handle, the pair is approaching channel top.
There is no specific catalyst for the break higher, calm equity and commodity markets encouraging carry trades.
0.7240 is strong resistance area, 20-day MA comes in at 0.7239 while 50% Fib of 0.7386/0.7097 is at 0.7241.
Stochs on 4H charts are in overbought zone, could see unwinding, retacements to 0.7160 likely.
If momentum continues, AUD could see further gains, break above 0.7240 could see the pair at 0.7275 (61.8% Fib of 0.7385-0.7096 fall).
Recommendation: Our previous call has achieved both targets - we recommend booking full profits
Enter fresh shorts around 0.7225, SL: 0.7250, TP1: 0.7160, TP2: 0.71
There is no specific catalyst for the break higher, calm equity and commodity markets encouraging carry trades.
0.7240 is strong resistance area, 20-day MA comes in at 0.7239 while 50% Fib of 0.7386/0.7097 is at 0.7241.
Stochs on 4H charts are in overbought zone, could see unwinding, retacements to 0.7160 likely.
If momentum continues, AUD could see further gains, break above 0.7240 could see the pair at 0.7275 (61.8% Fib of 0.7385-0.7096 fall).
Recommendation: Our previous call has achieved both targets - we recommend booking full profits
Enter fresh shorts around 0.7225, SL: 0.7250, TP1: 0.7160, TP2: 0.71
Trade closed: stop reached
