Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
1.0070ish has acted as a great S/R level recently and if you have a look at the H4 chart of AUDUSD you will see this level is very important now. After a sharp decline today from 1.0187, price tested 1.0090 and formed a nice hammer on the hourly chart:
Let’s have a short analysis on USD Index chart.
Price is already in the daily support zone between 75.60 and 76.30 which you can see in the chart below:
If we have a look at the hourly chart, we can see price has bounced off this support area and has recovered some of its losses:
If you look at your EURUSD hourly chart, you can see price has gone down exactly when USDX started to go up; This shows USD strength is ruling the market. But despite of this strength of the Greenback, AUDUSD has gone up nicely and hourly price action of this pair shows Aussie has got more power than before. Based on this kind of price action analysis and a nice hammer in the hourly chart, long positions would be good with stop around 1.0060 and profit target near the previous all-time high around 1.0250.
Buyers had got a better chance to board on the bus to the north around 1.0090 price level and this made the candles to form a nice hammer and a V-shape rejection in smaller timeframes during that time.
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