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.
Friday’s close saw the Audusd currency pair holding firmly above 1.0200 support. The week ahead appears to be setting up for a bullish run to retest 1.0550-1.0600, and eventually, perhaps to re-attain 1.0800 highs, if those levels give way. The weekly chart below illustrates the horizontal support line drawn across previous highs at 1.0200. This is the level that, if breached, will give the appearance of a left shoulder formation to equal a right shoulder at the same level, if retested. However, the recent price action is suggesting that this scenario is not likely to play out within the next few days.
The 4-hour chart shows a triangle holding above 1.0330 following a test of 1.0200 support. It is also worth noting that the pivotal 1.3030 level converges exactly with the .618% fibonnacci retracement level. This leads me to believe that a potentially strong breakout is in the works, and will be confirmed once the top of the triangle is cleared at 1.0450. I have bought the pair with targets at 1.0515 (daily trendline), and 1.0710, 1.1618 fibonnacci extension of the 1.0220-1.0450 up-swing. Only a clear breach of 1.0200 will change this general bullish outlook, in my opinion.
Thanks for reading, and have a pleasant weekend!
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When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
Other useful blogs:
Forex Crunch: Usdcad Outlook, April 23-27
The GeekKnows– Daily Commentary on Eurusd
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