When it comes to THE Australian Dollar, we have closely approached the broken descending channel in the weekly chart:
Now the price is testing the 50% Fibonacci level AND we are going to buy the asset below this level. that is, away from a broken channel. We will hope that the broken downtrend is going to get tested:
Buy Limit 0.7420, Stop Loss 0.7370, Take Profit 0.7650.
Looking at the 4-hour chart, we can see that the price is forming a bullish engulfing at the 50% Fibonacci level. However, it is wise to take the “watch-and-wait” approach before buying anything on the market:
Stay tuned for more and trade with Tickmill!