AUDUSD: March 11th Low of .7559 Nearly Hit Today As Pair Pushed Lower Since Last Week
The daily candle chart below shows the medium term price history of the Australian Dollar (AUD) versus the United States Dollar (USD). This currency pair is known as AUDUSD, and is trading near .7599 around time of publication today.
At the end of last week in the last post about AUDUSD in Ideas You Can Trade the trend was bearish after .8800 was missed, and the downside support target near the March 11th low of .7559 was reiterated. Since then the pair has continued its descent lower with today's session low near .7581 reached just earlier.
If support holds near today's low or just around .7559 (which could constitute a double-bottom formation) then a potential reversal or bounce could setup, whereas if this support area fails - then the bearish trend should push AUDUSD even lower and even towards the .7200-.7300 level in coming weeks.
Below are examples of how to trade a bearish continuation or a bullish reversal:
1. Bullish Buy Entry Order: Create a "Buy Entry Stop" @ .7670 with a Limit to take profit @ .7739 and a stop-loss @ .7621 Risk/Reward Summary: Limit risk = 69 pips profit / (-49) Stop-loss risk = Gain to Loss ratio = 1.41
2. Bearish Sell Entry Order: Create a "Sell Entry Stop" @ .7553 with a Limit to take profit @ .7401 and a stop-loss @ .7688 Risk/Reward Summary: Limit risk = 152 pips profit / (-135) Stop-loss risk = Gain to Loss Ratio = 1.13
Medium Term Daily Candle Chart: