AUD/USD awaiting bullish reversal for upside at 78.6% Fibonacci
Price at 78.6% Fibonacci for possible upside to tag 0.70760. Crucial to enter AUD/USD after bullish candle reversal signal.
AUD/USD – Multiple signals suggesting the bounce including price outside lower Bollinger band, 78.6% Fibonacci retracement, and candle rejection.
- 6% Fibonacci retracement tagged
- Price at lower Bollinger
- Price holding below the 200 EMA
- Price holding below the 50 EMA
- Waiting for bullish candle reversal
Support – 0.70455, 0.70380
Resistance – 0.70760, 50 EMA, 200 EMA
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 0.70493
Supporting Entry – 0.70500
Candle Reversals for entry
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 0.70408 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 0.70493 – Target 1 0.70760 = 3x Reward to Risk
Supporting Entry 0.70500 – Target 1 0.70760 = 2.7x Reward to Risk
Supporting Entry – Target 2 = Reward to Risk