AUD/USD Pending Breakout
Market Condition: AUD/USD Pending Breakout
Target 1: .7524
Target 2: .6429
(Created Using TradingView Charts)
The AUD/USD has started 2017 with a bounce off of last month’s low. With the pair firmly beneath the 200 day MVA (simple moving average), traders may wait for a new low to be created to consider fresh bearish breakout entries. For reference, the December 2016 low is found at .7159. Traders may find initial targets near .6794, which represents a 100% extension from the previous swing high of .7524.
In the event that prices remain supported, traders may elect to trade an AUD/USD retracement. Next resistance is found near .7370, and has been identified by drawing a trendline from a series of previous swing highs. Alternatively in the event that the AUD/USD trades through this trendline, it may suggest that the pair is preparing for a broader reversal. In this scenario, traders may look for the pair to approach the 200 day MVA near .7505 to confirm this opinion.
(Created Using TradingView Charts
--- Written by Walker, Analyst for DailyFX.com
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