AUD/USD – the Pair May Recover With a Possible Uptrend

My FX List
February 24, 2023
56 Views
technical analysis for forex traders

Risk – 0.75% per trade

Long Position

  • Open these positions after a bearish price action reversal on hourly time frame, once price touches $0.6790 or $0.6723.
  • Stop loss: place at 1 pip below the local swing low and move to break even once the trade gets 20 pips profit.
  • Take profit: Remove 50% of trade as profit once the stop loss is adjusted.
  • Let the remainder of the trade position run after taking profit.

Short Position

  • Open these positions after a bullish price action reversal on hourly time frame, once price touches $0.6847, $0.6895, or $0.6936.
  • Stop loss: place at 1 pip above the local swing high and move to break even once the trade gets 20 pips profit.
  • Take profit: Remove 50% of trade as profit once the stop loss is adjusted.
  • Let the remainder of the trade position run after taking profit.

This week, the Australian Dollar pair price continued to fall with a downtrend even though there were deep bullish retracements. In the case of a bullish recovery, there will be a chance for a long trade after the price touches the points we stated above. Selling short would be the best course of action nonetheless if the downtrend persists. But, the decline is probably going to produce a lot of choppiness, making it challenging to carry out a profitable short trade.

If the GDP growth rate of the US is higher than anticipated, the US Preliminary GDP report will have some effect on the pair. There are presently no significant data releases concerning AUD, therefore all attention is focused on the US Dollar and the preliminary GDP. If the bullish comeback doesn’t occur today, we shouldn’t hold out too much hope for it, and we should brace ourselves for a volatile day for the pair.

Author My FX List