AUDUSD has been in a bullish trend since few weeks. At this current resistance level, we see some stalling on the pair heading back towards the region of swing support priced at 0.6940. This support level will be our key take away level for the bullish momentum build up for the long position. it should be noted that the trend is bullish forming higher highs and higher lows. 

The market is in a bearish pennant channel which needs to recollect itself from the lower band of the trendline. This support trendline will play out as the rejection level for the price action and will be in confluence with the support level.

The golden retracement area of 75-78.6% is in confluence with the support level. This support level will play out to be heavy longs continuing towards the upper band of the trendline.

EMA 50 is bullish as well with prices hovering over the current prices. This EMA 50 needs to be retested but as per the charts, it does not seem that the confluence will be formed for the EMA 50.

RSI is at 60 which already indicated the small window towards the over bought side. We need the RSI towards the neutralized zone at the 50 level. If market breaches this 50 level, we have a chance for the market to dive into the over sold area forming a bullish divergence for the market to continue moving up.

AUDUSD correction to move up

Aug 01 2022

Stop Loss -0.68%

Holding time 16hr

0.69420

Entry price

0.68950

Stop loss price