Possible fakeout play through 0.73...
AUD/USD:
Going into early Asian hours Thursday, the Australian dollar derived fresh impetus on the back of better-than-expected employment figures. Despite this, the remainder of the day witnessed the AUD/USD enter choppy trade just south of its 0.73 handle.
0.73 is a key level, according to our technical studies. 0.73 is given extra credibility due to it fusing closely with the 2017 yearly opening level at 0.7282 positioned on the weekly timeframe. In addition to this, daily movement is also seen hovering just ahead of a Quasimodo resistance at 0.7304.
Areas of consideration:
On account of the above, a fakeout above 0.73 is expected to play out today/early next week. A H4 bearish pin-bar formation (entry/stop parameters can be decided on this structure) that pierces through 0.73 (see chart for a visual) and tests the daily Quasimodo resistance mentioned above at 0.7304 is desirable. Not only will this take out a portion of stop-loss orders above 0.73 – providing liquidity to those looking to sell – it’ll also draw in higher-timeframe sellers from the daily Quasimodo point. Should the setup come to fruition, the first take-profit target resides around either the trend line support (extended from the low 0.7041) or October’s opening level at 0.7229, whichever hits first.
Today’s data points: Limited.
Going into early Asian hours Thursday, the Australian dollar derived fresh impetus on the back of better-than-expected employment figures. Despite this, the remainder of the day witnessed the AUD/USD enter choppy trade just south of its 0.73 handle.
0.73 is a key level, according to our technical studies. 0.73 is given extra credibility due to it fusing closely with the 2017 yearly opening level at 0.7282 positioned on the weekly timeframe. In addition to this, daily movement is also seen hovering just ahead of a Quasimodo resistance at 0.7304.
Areas of consideration:
On account of the above, a fakeout above 0.73 is expected to play out today/early next week. A H4 bearish pin-bar formation (entry/stop parameters can be decided on this structure) that pierces through 0.73 (see chart for a visual) and tests the daily Quasimodo resistance mentioned above at 0.7304 is desirable. Not only will this take out a portion of stop-loss orders above 0.73 – providing liquidity to those looking to sell – it’ll also draw in higher-timeframe sellers from the daily Quasimodo point. Should the setup come to fruition, the first take-profit target resides around either the trend line support (extended from the low 0.7041) or October’s opening level at 0.7229, whichever hits first.
Today’s data points: Limited.
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