We are planning to enter a long position on AUD/USD at 0.66, which aligns with yesterday's lows and represents a strong support level.
Technical Indicators: The medium-term bias remains bullish, but the hourly chart suggests further downside potential before the uptrend resumes. This provides an opportunity to enter at a more favorable risk/reward level.
Key Levels:
Entry: 0.66 (yesterday's lows and bespoke support level)
Stop Loss: 0.6563 (placed below the support level to manage risk)
Take Profit: 0.6656 (targeting a key resistance level) 61.8 Fibonacci level
Strategy:
As the corrective sequence continues, we aim to set longs on dips, capitalizing on the better risk/reward ratio provided by the current market conditions.
The bespoke support at 0.66 is a critical level, providing a strong foundation for the expected reversal and continuation of the bullish trend.
Support and Resistance Levels:
Support: 0.66
Take Profit: 0.6656
Stop Loss: 0.6563
By adhering to this strategy, we seek to capitalize on the prevailing bullish trend while managing risk through well-defined stop loss and take profit levels.