Wednesday, March 5, 2014

AUD/USD trade

AUD/USD over the past few months, but that's starting to change.
For much of February it ranged between 0.8870, the 50% retracement of the January-February rise, and 0.9078/89, the 38% retracement of the October-to-January bear trade and the January failure high. Bullish trending conditions are already in place, reflected by the MACD being above its zero line and what looks like a 'higher high' this week, above the January low.

Traders should focus is now on momentum tools, which are threatening to cross higher again within the bullish trend. A close above 0.8975 would cause us to recommend a new long, looking to take out 0.9078/89 to rise as far as 0.9330, which is just below the 62% retracement level of 0.9338, with a stop initially at 0.8865, the retracement support.