Here's Why We Are Growing More Bullish on the Australian Dollar Against the USD
Although price did probe into a much lower level which stimulated this demand, it still has the length required fora bottoming candle for very short term. Overall the monthly candle (closed) bearish that could mean much worse things, but for the moment it closed with the positive nature of how long the tail was during the rebound attempt.
In most cases a bullish reversal has these characteristics. The sellers get exhausted, and exit their positions. Price tightly consolidates. Then price breaks out in the opposite direction. We feel that with the power of Friday's daily candle, the AUD should attempt to continue climbing until it reaches a point of stiff resistance.
Seeking out resistance
This trade has a balanced risk/reward picture to it. In this instance, protective stop loss orders should be somewhat tight because who knows if it could be a false rally attempt. Also, I provided some levels where I would want to be a seller in anticipation of stalling or potential weakness from hitting barriers above 0.7434, 0.75, 0.755 should try to stop the Aussie from rallying and could be decent levels to scale out of temporarily close long positions.
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