FX.co ★ hickle.manuela | Comprehensive Analysis in Trading: Mastering Methodologies

AUD/USD

The technical tools I use in this case are indicating a continuation of the bullish scenario that started two weeks ago (upper screenshot). The previous weekly candle closed with its body above the prior one at 0.7044 +/- (blue), and these are good conditions to start looking for buy entry points with the opening of the new trading week, in continuation of the uptrend. In my case, the target will be the nearest liquid swing extreme (fractal) at 0.7088, which I’ve had my eye on for quite a while.

On the daily timeframe I’ve highlighted in light green the area that’s comfortable for waiting for a correction and reversal. But here all the attention is on the 50% retracement level (0.7044), which is exactly the high of the previous candle; I’d really prefer not to see trading below it. Even if we do trade below, that doesn’t cancel the bullish scenario, it just means the correction could go deeper than the expected area, which would delay the reversal and the purchase of the asset.