Although the price action on AUD/USD isn't particularly clear, the pair is still trading above the 50 EMA on the weekly timeframe. Over the past two weeks, we've also seen strong bullish rejections, suggesting that buyers are still defending lower prices.
The 10 EMA and 20 EMA are converging, which indicates slowing momentum, but there's still a reasonable possibility that price could break above the previous week's high.
PDH is cleared.
On the 4-hour timeframe, after the recent rejection, I can identify a good Fibonacci setup. Price has closed above the 61.8% retracement of the last bullish impulse, which adds confluence for a potential long position.
My plan is to look for a long entry and target the previous week's high, with the possibility of extending the target slightly beyond it if momentum continues.
That said, this isn't a perfect setup. There is still a chance that price could break below the previous week's low. Additionally, the 4-hour break of structure isn't very convincing since it was only a wick break rather than a candle close above the level.
Overall, this isn't an A+ setup, but it's a valid trade idea with enough confluence to keep on my watchlist.
The 10 EMA and 20 EMA are converging, which indicates slowing momentum, but there's still a reasonable possibility that price could break above the previous week's high.
PDH is cleared.
On the 4-hour timeframe, after the recent rejection, I can identify a good Fibonacci setup. Price has closed above the 61.8% retracement of the last bullish impulse, which adds confluence for a potential long position.
My plan is to look for a long entry and target the previous week's high, with the possibility of extending the target slightly beyond it if momentum continues.
That said, this isn't a perfect setup. There is still a chance that price could break below the previous week's low. Additionally, the 4-hour break of structure isn't very convincing since it was only a wick break rather than a candle close above the level.
Overall, this isn't an A+ setup, but it's a valid trade idea with enough confluence to keep on my watchlist.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.