Potential long on AUDUSD.
With a load of US data coming out this week and FOMC I'm hesitant to really hold onto any USD trades.
However, expectations are that the FOMC will keep hold on rates and expectations for 2 rate hikes this year has fallen as well.
With the AUD being slightly bullish from a central bank perspective, I believe trading into the FOMC event with a bearish bias will prove profitable.
From a M15 chart perspective, it looks ripe for a wave 5 trade with a minimal risk:reward at 1:3.
This may very well be a wave 1 and could retrace deeper for a wave 2 on a higher timeframe so a conservative stop would be at 0.7696 with a target at 0.74273
On a shorter time frame trade I would place my stop at 0.73867 and target the same. As a target it could very well shoot past 0.74703 but being the AUD I wouldn't hold my breath as a short term target.
With a load of US data coming out this week and FOMC I'm hesitant to really hold onto any USD trades.
However, expectations are that the FOMC will keep hold on rates and expectations for 2 rate hikes this year has fallen as well.
With the AUD being slightly bullish from a central bank perspective, I believe trading into the FOMC event with a bearish bias will prove profitable.
From a M15 chart perspective, it looks ripe for a wave 5 trade with a minimal risk:reward at 1:3.
This may very well be a wave 1 and could retrace deeper for a wave 2 on a higher timeframe so a conservative stop would be at 0.7696 with a target at 0.74273
On a shorter time frame trade I would place my stop at 0.73867 and target the same. As a target it could very well shoot past 0.74703 but being the AUD I wouldn't hold my breath as a short term target.