AUDUSD: Short term bullish, long term still bearish!
The AUDUSD retested 0.7200 support level before bouncing higher again, forming a bullish hammer candlestick pattern at the 50-days SMA. Meantime, the overall bias in the short term remains bullish to sideways as the price could be moving in a slightly rising channel as shown on chart.
The hammer at support suggests a move higher is likely in the near term. We could retest 0.7390 previous high and may extend towards the next resistance at 0.7440 which coincides with the 200-days SMA. If we reach that area, I will be watching for a bearish confirmation signal to go short.
A break back below 0.7170 may negate this bullish scenario.
To know more about how to trade the hammer candlestick, visit thefxchannel.com/trading-tutorials/the-hammer-candlestick/
Best regards
Technician
The hammer at support suggests a move higher is likely in the near term. We could retest 0.7390 previous high and may extend towards the next resistance at 0.7440 which coincides with the 200-days SMA. If we reach that area, I will be watching for a bearish confirmation signal to go short.
A break back below 0.7170 may negate this bullish scenario.
To know more about how to trade the hammer candlestick, visit thefxchannel.com/trading-tutorials/the-hammer-candlestick/
Best regards
Technician
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