AUD/USD: Bullish Continuation/ Bearish Reversal?
Bullish Case:
Australian Central Bank did not lower rates as many were expecting. Price broke out of a flag consolidation to the upside a couple of days back.. Test of support at ~0.9270 was a success. Still too many shorts. Double bottom. Heavy support in the .9200-.9270 range.
Bullish Trade: Long at .9400, Stop: Close below 8 day MA on Volume, Target 1: .9500, Target 2: 50% Fib
Bearish Case:
Shorts are actually right. Australian Central bank is going to lower rates in the future. Primary trend is still down on the weekly. I am leaning towards the bearish case. Unlike the trade below I am actually going to take Tier 1 size short early on a break below .93700
Bearish Trade: Short on close below .9200, Target: Double bottom lows.
Australian Central Bank did not lower rates as many were expecting. Price broke out of a flag consolidation to the upside a couple of days back.. Test of support at ~0.9270 was a success. Still too many shorts. Double bottom. Heavy support in the .9200-.9270 range.
Bullish Trade: Long at .9400, Stop: Close below 8 day MA on Volume, Target 1: .9500, Target 2: 50% Fib
Bearish Case:
Shorts are actually right. Australian Central bank is going to lower rates in the future. Primary trend is still down on the weekly. I am leaning towards the bearish case. Unlike the trade below I am actually going to take Tier 1 size short early on a break below .93700
Bearish Trade: Short on close below .9200, Target: Double bottom lows.