AUDUSD

We last looked at the AUDUSD candlestick formation last month. During that time price traded at a very key support level. Refer to link for reference https://fxsits.com/the-audusd-shows-bullish-price-action/ . Since then we have seen the AUSUSD being reject at the resistance level 0.72104. We see how price fails to move past this level on different occasions and currently trades below the level.

AUDUSD H4 chart 9 October 2020
AUDUSD H4 chart 9 October 2020

If we look at the H4 time frame, you will notice how the AUDUSD candlestick behaves around this level. Price finds resistance at level 0.72104 before retracing back bearish to level 0.71461. This level acts as our most recent support level. If price moves past this level it exposes level 0.709169 which is our next support level. This only possible if price trades below level 0.71461. If price moves above the recent resistance level we may see price reach the target level at 0.73250.

AUDUSD Daily chart 9 October 2020
AUDUSD Daily chart 9 October 2020

If the AUDUSD candlestick (daily) closes above the recent resistance level. This could signal a bullish continuation of the pair.We must not forget that the pair has been on a long term bullish run for months. We belive that this market still holds strong bullish price action. The Australian market is proving to be a strong market despite the covid-19 pandemic.

NB: Warning Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consider position sizing before entering a trade and manage your risk accordingly. Please read the risk warning before deciding to trade the markets.

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