AUD/USD where do we go from here? by BOAFX Trading Signal Solutions

moneytree123

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After the breakout of the big "W" pattern earlier in the month we predicted that a reversal would be in sight to around the breakout point. This week we have seen that happen as we predicted and start back on the bullish trend to our target of 0.9400. After going through the target to 0.9440 and pulling back to just short at 0.9389 we have to ask: where do we go from here?

As you can see in the technical analysis thread the chart shows that the pull back to 0.9287 was no accident and is in fact a resistance level from back in July. the quick up move suggests trader sentiment toward the bullish continuation so let's look at this information and catch our breath for a moment or two.

I would assume at this point that the old resistance is going to become support so anything above 0.9287 is an indication of a buying signal however we would now need to look at volume and volatility to make our decision. After already taking 90 pips from this up move today it is important not to risk all our profit on the same trade. Personally I will be looking for a new high above 0.9440 to get back in or below the new support for the sell. anything else at this stage would be a gamble and best avoided.

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