AUD/USD – Can Expect a Bullish Recovery Happening
Risk per trade is 0.75%
Bullish View
- Wait for a bullish price action reversal H1 timeframe and place trades once price reaches $0.6790 or $0.6723.
- Stop loss – 1 pip below the local swing low
- Adjust stop loss to breakeven once the trade is at profit by 20 pips.
- Take profit by removing 50% of trade.
- Let the trade run.
Bearish View
- Wait for a bearish price action reversal on H1 timeframe and place trades once price reaches $0.6847, $0.6895, or $0.6936.
- Stop loss: 1 pip above the local swing high
- Adjust stop loss to breakeven once the trade is in profit by 20 pips.
- Take profit by removing 50% of trade.
- Let the trade run.
We saw the Aussie Dollar pair moving with a bearish trend this week. But there were also deep bullish retracements. We may see a stronger bullish recovery and if that happens there will be an opportunity for a long trade once the price reaches the above-specified levels. But if the bearish trend continues, then going short would be ideal. But the downtrend is likely to cause a lot of choppiness making it difficult to execute a successful short trade.
The US Preliminary GDP data will be having some impact on the pair if the GDP growth rate surpasses the expected estimate. There are no key data releases concerning AUD and all eyes will be on the US Dollar and preliminary GDP data as of now. We can’t be too sure about the bullish recovery and should be preparing for a choppy day for the pair if the recovery doesn’t happen today.
