AUD/USD just bounced from a key area of interest and is heading fast for another area of interest!
Will the pair maintain its consolidation today?
Or will AUD bulls succeed in forcing a bullish reversal?
AUD/USD: 4-Hour Forex Chart by TradingView
As you can see, AUD/USD has been trading inside an observable range since August when the pair made .6520 a support-turned-resistance and also bounced from the .6360 area.
The .6360 support area, in particular, was reinforced earlier this week when AUD/USD bounced at the level for a THIRD time in a few weeks.
Will AUD/USD stay inside its range?
Stochastic is already flashing an “overbought” signal but AUD/USD’s candles are giving “not yet done” vibes with a bullish candlestick above the mid-range and SMA resistance zone.
Momentum traders can take advantage of the short-term upside breakout and take AUD/USD longs until the pair hits areas of interest like .6475, .6500, or .6510.
If you feel like AUD/USD can still stay inside its months-long range in the next couple of days, then you can also wait for a rejection at the .6510 range resistance.
Whichever bias you choose to trade, make sure to use stop losses and risk management in your exit strategies!