Remember that range support play that we spotted a coupla days back? Well, it looks like the bulls got to work!
AUD/USD is a few pips away from the .7800 major psychological handle that has been limiting the bulls’ game since March. And look at that, Stochastic is chillin’ in the overbought region!
Aussie bears can start placing them short trades or wait for an actual retest of the .7800 zone if they believe that AUD/USD will head back to its mid-range or 4-hour range support.
Feel like the Aussie will soon bust above its range? You’ll want to wait for a clear break above .7800 if you want to target areas of interest like .7925 or .8000
AUD/USD is sporting wicks near the .7700 major psychological handle that lines up with the 100 and 200 SMAs as well as a range support that bulls and bears have been playing with since mid-April.
Today’s oversold Stochastic signal can bring some bulls to the Aussie’s yard. A long trade at current levels is a good play if you think that the .7700 range support would hold in the next trading sessions.
If AUD/USD breaks below .7700 and the SMAs, however, then you should make trading plans for a possible trip to the .7660 previous resistance or even the .7600 inflection point.
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