AUD/USD: Potential swing trade long setup
AUD posted a strong rally of 5% from the April low, before 67c capped as resistance. A choppy rage has since formed between 66c-67c, although it could also be a bull flag in the making. Whilst we wait for it to decide which of the two it is, we're looking at a cheeky swing trade long idea heading into the weekend.
The 1-hour chart shows a strong rally from US CPI, and recent prices action has retraced against that move. Prices are stabilising around the 20-day EMA, so perhaps it is close to a swing low. The bias is bullish whilst prices hold above the monthly pivot point (0.6610), but tighter risk management could be used if momentum turns higher (such as the recent swing lows).
The initial target is near the upper 1-day implied volatility band of 0.6657.
The 1-hour chart shows a strong rally from US CPI, and recent prices action has retraced against that move. Prices are stabilising around the 20-day EMA, so perhaps it is close to a swing low. The bias is bullish whilst prices hold above the monthly pivot point (0.6610), but tighter risk management could be used if momentum turns higher (such as the recent swing lows).
The initial target is near the upper 1-day implied volatility band of 0.6657.
