Daily Price Action

AUDUSD Sets New 2020 High, Targets 0.7740


On November 3rd, I wrote about a potentially bullish scenario for the AUDUSD.

The pair was breaking out of a wedge pattern at 0.7130.

Since then, the Australian dollar has rallied 300 pips.

You can see how AUDUSD has produced some nice stair-step price action over the last few weeks.

On top of that, buyers are working on a breakout above the 0.7410 level.

That’s the area I’ve written about several times.

Yesterday closed above it, and 0.7410 appears to be attracting a few buyers so far today.

However, given that this is Friday, I’d like to see a weekly close above 0.7410 before deciding whether or not to go long.

That will accomplish two things.

First, a weekly close above 0.7410 will be more confirming that a daily close.

And second, it keeps me from entering the market before the weekend.

I prefer to enter early in the week to avoid any weekend gaps that arise due to weekend volatility.

Additionally, today’s session, at least so far, is forming an inside candle.

Those familiar with how I trade inside candles know that it can be an effective continuation pattern.

That’s especially true following a key breakout.

If AUDUSD can hold above 0.7410 next week, there isn’t much to prevent a run at the 0.7740 resistance area.

Above that, the Australian dollar could target 0.8100 as we head into 2021.

Alternatively, a close back below 0.7410 would delay the bullish outlook and re-expose 0.7340 and perhaps 0.7230.

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Justin Bennett says

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Umar says

I really appreciate this, Can’t wait to become a member sooner…thanks

    Justin Bennett says

    You’re welcome, Umar. I look forward to seeing you in the member’s area.

christian ali says

great and accurate prediction brother

    Justin Bennett says

    Thanks, Christian.

Minenhle Mkhize says

Great analysis brother, the 0.8100 zone looks very strong if we carry on with the bullish bias. Your input really helped a lot as this is a pair i follow closely as well. The Dollar index also seems like a great tool to use for dollar related pairs , found it to be very effective.

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