The AUD/USD has once again pulled back off of a high while in an uptrend. This is a classic buying opportunity.
Entry could be based on using your favorite technical indicator or to buy on a move up through resistance. Initial protective stops should be placed below support with profit targets set as twice that risk for our 1:2 risk:reward ratio.
I’m hesitant to go long yet. Price just bounced off the .618 fib line. Price very well could drop a couple hundred pips before it decides to move back up.
So while I do agree that price is going to go up, I’m not sticking making my entry until price can get around .7400.
As previously mentioned, the .618 fib line proved to be a viable line of resistance. If you draw an imaginary line across the chart, you’ll also see where it was acting as a line of s/r in the past.
I’ll now be watching to see if pricing is going to bounce back off of the previous low. However, my interest lies at the red line. If price continues down, I’ll be looking for it to reverse around that point, where I’ll hop back in and ride it up 50-100 pips.
After that, price can do whatever it wants.
I just as well could have posted this on my Price Action Hero thread. However, I don’t mind getting a “one up” over DailyFx. ;}