AUDUSD:- Rebounding Off Critical Region
AUDUSD:- The Australian found a sudden surge of strength alongside Gold on Friday and blew all expectations away with a huge bullish day leaving me behind.
What we can see now from the higher timeframes is the weekly closure is extremely bullish with a strong hammer candlestick with an elongated wick to the downside showing that buying pressure dominated the close of last week. The daily also formed a swing point reversal formation buy entirely engulfing the previous day's price and break back above 0.71500.
At the start of the week, I was looking for any form of retracement back into the critical zone of the price that has previously acted as strong support and resistance for the pair. We have now seen the pair pull back 50 pips into my buy region and I will now be looking for long opportunities to ride the pair back to the weekly level of resistance 0.72250 and beyond towards 0.73000
NFP is looming in the background and therefore markets may behave in a stale manner until then, but with the government shut down out in America recently it is expected to be volatile release. As long as price remains above 0.71200 I will be looking for long opportunities. A Break below would invalid my trading set up.