(As always, our students got notified early about this analysis)
The AUDUSD is currently in a short term downtrend but in a longer term bull cycle. You can see in this chart that AUDUSD got hammered past few days and did a 3 month low.
Looking at the weekly FIB extensions we may have now hit a wall. Concidently, that FIB extension lines up perfectly with support. I'm also looking at how gold performed last few days and the same scenario happened. Gold now built a nice that it couldn't breach to the downside.
This move makes sense since AUD economy is built off and vice versa.
Now that I got 2 confirmations that a up move is imminent, I looked at the RR. Since we could enter the trade right when it was sitting on said support, the RR on this trade is amazing. That makes it all worth to enter.
Here's what I'm thinking :
ENTRY : 0.7692
SL : 0.76525
TP : 0.79434
Disclaimer: This is my trading analysis, it is not an invite or recommendation to trade.