AUDUSD – Buying short-term Preferred?

The Aussie Dollar is enjoying a nice bullish ride against the US Dollar, which may continue in the near term. There is a chance of two waves up towards the triangle resistance area formed on the daily chart. In that situation, we may consider entering a sell trade.

In the short-term, I think the AUDUSD pair might head higher after a minor correction. There is a 20-candles ride already, which means it might correct lower, presenting us a buying opportunity.

Technical Analysis

D1– Chart highlighting the possibility of a move towards the triangle resistance area.

Sell Entry:

H4– We can enter a sell trade in the AUDUSD pair if it moves higher towards the highlighted two waves up resistance area near 0.7340.

Target 1: 0.7220
Target 2: 0.7180
Stop Loss: Break and close above the highlighted triangle resistance area on the 4-hours chart.

Buy Entry:

H1– We can enter a buy trade in the AUDUSD pair if it moves down in two waves towards the trend line, and forms a bullish divergence.

Target 1: 0.7300
Target 2: 0.7340
Stop Loss: Below 0.7150

Video Explanation:

Yours,
Vladimir