If you’d like to learn more about this trade and many others, check out my personal trading blog! Price is at the 200 EMA and the 50 SMA, a level that also happens to be a support level established previously — most recently in early April. At this confluence level, we are seeing rangebound price action developing. I’m viewing this as a sign that accumulation could now be occurring once again on AUDUSD. As such, I’ve put an order to go long at 9215, with my stop at 9160 and my target profit at 9428. I’m risking 55 pips to gain 213, which gives me a reward/risk ratio of about 3.87.

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AUD/USD is listless in Monday trade, as the pair trades in the mid-0.92 range late in the European session. In economic news, Australian Building Approvals posted a second straight decline and missed expectations. On Monday, today’s major event in the US is ISM Non-Manufacturing PMI. The markets are expecting the index to improve in the April reading. In Australia, […]

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AUDUSD Corrective Bias Still Back to .9205

AUDUSD setback to aim for .9205, which should offer firm support

  • We stated in our last client report that “we see the skewed risk early this week for a dip lower, towards modest support at .9205, but see this level holding to maintain a range environment through month-end” and the bearish outside pattern Monday reinforces this view.
  • We still see negative bias within a range environment, defined by .9205 and .9425, but look for this support to try to hold into month-end.

WHAT CHANGES THIS?

  • Downside: Below .9205 sees a better top and a more bearish shift to favour erosion through the 200-DMA, .9150 for .8995.
  • Upside: Above .9425 would re-energize the bull tone for .9835/40 targets.

Please see full report with levels and latest audio-visual analysis here: http://members.marketchartist.com/Daily/AUDUSD.pdf

Daily AUDUSD

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AUD/USD ended the previous week on a bearish note, breaking and holding below the 0.93 handle. This also meant breaking and holding below a rising trendline from March. Traders are holding AUD/USD above 0.9250, a pivot seen in late March, early-April as well. It can be also stalling at the projected support of a falling channel. Support factors: The AUD/USD is in a major consolidation/correction against the uptrend that began late-January/early-February…

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