Reasons for this trade
After the recent bullish run that started on 2017-05-10 we have taken out strong resistance at 0.78000 level
which has held since 2016 testing that area numerous times and being un able to break it
Now that level has been broken and we have made a new higher high and looks like we have made a Higher low (Signs of a bullish trend)
Also we have bounced of the 50% fib level which lies on strong previous Resistance 0.78000 level playing as support
we have also bounced off our Bullish trend line with a huge bullish engulfing candle (Daily timeframe)
after a nice pullback we finally have broken the counter trend line which can sign a bullish continuation to come
Also on the 4 hour time frame it seems the counter trend line is acting as support printing 3 nice long wicks
Another huge factor to acknowledge is Friday COT Report has shown us a healthy amount of non-commercial traders E.g. banks hedges funds and so on are short on the USD and long on AUD
The numbers being (AUDUSD LONG 93,318) (AUDUSD SHORT 33,706)
Best of luck to everyone trading this pair
My entry 0.79460
For a more conservative entry wait for close above 0.7950
TP 1: 0.8000
1-2% of account size max
After the recent bullish run that started on 2017-05-10 we have taken out strong resistance at 0.78000 level
which has held since 2016 testing that area numerous times and being un able to break it
Now that level has been broken and we have made a new higher high and looks like we have made a Higher low (Signs of a bullish trend)
Also we have bounced of the 50% fib level which lies on strong previous Resistance 0.78000 level playing as support
we have also bounced off our Bullish trend line with a huge bullish engulfing candle (Daily timeframe)
after a nice pullback we finally have broken the counter trend line which can sign a bullish continuation to come
Also on the 4 hour time frame it seems the counter trend line is acting as support printing 3 nice long wicks
Another huge factor to acknowledge is Friday COT Report has shown us a healthy amount of non-commercial traders E.g. banks hedges funds and so on are short on the USD and long on AUD
The numbers being (AUDUSD LONG 93,318) (AUDUSD SHORT 33,706)
Best of luck to everyone trading this pair
My entry 0.79460
For a more conservative entry wait for close above 0.7950
TP 1: 0.8000
1-2% of account size max
