So AUD/USD looks great as a long-term trade set up, although I am not in just yet but i am looking for an entry long.
On the Weekly Chart we broke out of a triangle pattern, at the base of a long-term bearish trend, and price pulled back to retest as support last week. We had a nice bounce from this level confirming buying pressure coming back in here and I am now looking at where this pair can go long term.
Looking at the Daily chart we can see that test of support has fallen nicely in to our 50% fib retracement level giving added confirmation for the move. Keeping with price action rules we would now be looking to make a new higher high as the trend continues and this would fall at 0.8250 resistance, just under our fib extension level.
Remember this analysis is just creating a directional bias for the pair and as I said before I am not in any trade here just yet. I will be keeping my eye out for the chance to enter but also remembering that there are no guarantees and will be continuously assessing the pair in case of a change in momentum.
