AUD/USD Fed members shakeout can’t stop bulls
AUD/USD technical analysis
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1-2-3 Bullish pattern.
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Bulls are strong.
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Shakeout couldn’t stop bulls.
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0.6785 and 0.6823 with 0.7175.
MEGATREND MAs: Bullish
D1 chart AUD/USD
1. Point 1.
2. Point 2.
3. Point 3 of 1-2-3 pattern.
4. Target zone 1.
5. TP Swing 2.
The AUD/USD has made 100 pips for the last 14 days. It makes it a moderately volatile market and we can see that the scenario that I have been trading lately - buying the dips is going great! Buying the dips is possible currently on Daily timeframe but we can also watch h4 timeframe when the price runs away from the MEGATREND MAs on the daily chart.
The entry zone is 0.6690-0.6700. First target is 0.6785 -- 0.6823 while we can also presume the swing target 0.7175 might be hit in case we see a strong momentum above Q H4. If the MA’s break 0.6823 or the market keeps above it, we could see a bounce towards the swing target.
Yesterday's shakeout didn’t cause bulls to fear. After Thanksgiving holiday orders were unwinded and the dollar was up. It also added some flow-driven trade plus we are at month’s end so some USD related portfolio adjustments needed to be made which made USD falsely strong. However the shakeout only gave us the better price to buy the pair.
The AUD/USD is bullish. Buying the dips is the scenario. Megatrend angle is sharp and clear and we will see a move to the upside until targets are hit. No reversals hinted at this point. The pair can be traded both as intraday and swing plus we can apply the Guerilla tactics meaning we hit and run and buy again on the dip.
Author
Nenad Kerkez
Top-XE
