AUDUSD has volume in the Asian session and usually moves in correlation to EURUSD. Since EURUSD is bullish right now, with correlation we can expect AUDUSD to follow suit.

- Market structure: Market structure on AUDUSD is bullish right now and we will wait for a support level to take our long positions. Till market reaches there, we are not going to take a long position. The support level is priced at 0.7310.

- Trendline: AUDUSD has two trendlines in play. Earlier, the descending trendline was broken out: with candles opening and closing above the trendline. Secondly, we have an ascending trendline, which is being tested by the market right now. Even if this minor ascending trendline is pierced, the structure is still bullish so we will wait for the buys instead of hopping on to the sells.

- Retracement: The golden retracement level of 75-78.6% is in confluence with the support level at 0.7310. This confluence is formed perfectly with an overlap and will trigger the bullish volume. This is the area we will be looking for buys.

- EMA's: Both EMA’s are above the current price reflecting a bearish bias. This being said, we do have to note that the EMA 50 has been tested numerous times before and might be pierced on the next bull push. Secondly, EMA 200 has not been tested earlier after the breakout. Therefore, the upward room till the retest still remains. This retest will be our profit target.

- RSI/CCI: Both oscillators are in a neutral region hovering around the neutral levels. If the level is broken through the horizontal trendline on the RSI at the 59 levels, then we will see AUDUSD continuing momentum upwards. CCI needs to break its neutral level to continue up. We have an ascending trendline drawn, which needs to pierce for a move up.

AUDUSD has 3 confirmations for buy at the 0.7310 levels. This level will act as a catalyst to move the pair up and continue the bullish momentum.

Waiting for retracement for AUDUSD buys

Jul 27 2021

5