AUDUSD monthly breaking an important support (2005-09-07).

[stephane]

The Aussie just broke the 0,71 support level, which is also a support fib line. It looks like it wants to rush to the next level, namely a 0,886 fib line at 0,66.

Now, that pair is much oversold and shows several bullish stochastic divergences ; I will certainly not enter a short here or buy a low. I need a pullback.

But as long as we are under 0,71, I will look for short entries on my trading Timeframe (H4), with my take profit level slightly above 0,66. This is obviously a swing trade.

 

[josee]

thank you for sharing your views stephane

 

[josee]

please if possible keep posting some updates

 

[stephane]

HI Josee, it will not be always possible, but I will try. For AUDUSD the pair completed a bullish harami on the daily and is now reaching that resistance level I was writing of.