Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
Audusd is currently trading above some significant support at .9950 daily right shoulder area of the bearish reversal pattern. The bullish momentum started after the test of the weekly trendline at .9537. Since then, we have seen a bullish engulfing weekly close above the critical .9850 resistance. When the market traded above this zone, prior to the weekly trendline test, it did offer strong support, and has now adopted the same role effectively thwarting all attempts at a break back below that level.
The daily chart below shows the support level mentioned as the pair pushes up out of the right shoulder resistance area. Yesterday’s bar closed quite bullishly here, and we are currently seeing renewed bullish strength, even as it pierces through parity. The next major resistance from here is the weekly high at 1.0183. However, we do have major economic news due out today. The daily close, in my opinion will be important in determining whether the daily reversal is to be completely violated, or if this extremely bullish scenario will change. The daily candle needs to close back below .9900 and then .9850 to turn the bias back from bullish to bearish.
This is my take on the technical setup of the pair, but I’d love to hear other views. Thanks for reading, and successful trading! 🙂
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