Market Condition: AUD/USD Pending Breakout
Target 1:pppppp2X ATR at .7849
Target 2:pppppp4X ATR at .7949
AUD/USD sentiment values remain near extremes, with SSI totaling -1.91. With 66% of traders positioned net short, contrarians may begin to look for bullish breakouts on the creation of new highs. Breakout traders may consider setting entries above the standing AUD/USD 2017 high at .7749. Daily ATR for the AUD/USD currently reads at 50 pips. This means traders may find an initial 2X ATR profit target near .7849. Also a 1X ATR may be considered near .7699 in order to create a 1:2 risk/reward ratio.
If the AUD/USD fails to breakout higher, traders may consider deleting any pending entry orders to buy the pair. In this bearish scenario, traders may elect to verify a change in the trend with an increasing SSI total. Then fresh bearish breakout positions may be considered.
--- Written by Walker, Analyst for DailyFX.com
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