The currency markets remained quiet after yesterday’s US holiday.

The Monetary Policy Meeting result earlier favored AUDUSD which is up 0.27% at time of writing.

I’m seeing the 0.6380-0.6420 range as optimal buy zone but may not be revisited any longer if we consider the recent local low at 0.6445 as the bottom for the next leg up move.

Intraday bulls has managed to break the 17-day 0.6550 resistance for good and in the process of flipping it into a support.

Apparently, I am already a bit late for a long entry but I still have a chance if AUDUSD buyers cannot push higher to 0.6570 to end Tuesday trading.

I am ignoring all sell setups and focus buying the pullbacks only. 

We can see a new 4H bullish FVG wherein I place a long entry with a 2.0 risk:reward setup. The stop loss is placed under February 19 lows while the take profit is my speculated CoCH OB.

Here’s AUDUSD’s high timeframe candle patterns:

Monthly Candle: Long Legged Red Doji with Small Body

Weekly Candle: Previous close is a Long Lower Green Shadow current is a Small Green Body

Daily Candle: Previous close is a Green Inverted Hammer with ½ Body current is a Green Spinning Top with Longer Tail Wick

Fundamentally, the Greenback remains stronger against the Aussie battler. On the yearly chart, there’s a very strong 9-year trendline resistance starting at 0.80.

We can see higher lows forming the support trendline. The monthly candle is suggesting a choppy range 0.64-0.66. Good sell side liquidity collection shown in the last 2 weekly green candles which supports my trade idea of a short term moving up targeting nearby resistances.

AUDUSD Intraday Analysis and Trading Plan For February 20, 2024

Feb 20 2024

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