AUD/USD – Bullish Momentum or Liquidity Grab?
Technical Breakdown:
The Australian Dollar vs. US Dollar (AUD/USD) is showing an interesting setup, with price action hinting at potential continuation to the upside. Let’s dive into the analysis across multiple timeframes to see if buyers are in control or if we’re facing another liquidity trap.
Weekly Timeframe:
• AUD/USD experienced a strong bearish move after reaching 0.6938 in September 2024, followed by a relentless downtrend to 0.6085 by mid-November.
• Since then, we’ve seen a three-week bullish push off the lows, suggesting a potential shift in sentiment.
• A higher low has been established, but the key question remains: Will buyers maintain control?
Daily Timeframe:
• A structural break above 0.6311 signals bullish intent.
• The market previously swept early buyers, forming a double bottom, before pushing back above resistance.
• Current price action is retesting this level, potentially building liquidity for the next leg up.
H4 Timeframe (Trade Execution Level):
• Price printed a higher low at 0.6371, and bullish momentum is attempting to reclaim the recent highs.
• A strong bearish retracement provided a potential early buy entry, setting up a high reward-to-risk trade.
• If price holds above the 0.6359 entry zone, we could see further upside targets.
Entry & Risk Management:
• Entry: 0.6359
• Stop Loss: 0.6371 (tight 5-pip stop)
• First Target: 0.6408 (1:6 RR)
• Final Target: 0.6446 (1:9-1:10 RR)
Market Psychology & Liquidity Play:
• Many traders chased the highs and placed stop losses below local support—these were swept out.
• A large bullish volume candle remains significant, hinting at strength in buyers.
• If the market sustains momentum, we could see a move toward higher resistance at 0.6446.
Conclusion:
AUD/USD is setting up for a potential bullish breakout, but traders must watch for confirmations on lower timeframes. If price structure holds, this could be a highly profitable swing trade.
Like this breakdown? Follow, boost the post, and drop your thoughts in the comments! Let’s see where AUD/USD heads next.
Technical Breakdown:
The Australian Dollar vs. US Dollar (AUD/USD) is showing an interesting setup, with price action hinting at potential continuation to the upside. Let’s dive into the analysis across multiple timeframes to see if buyers are in control or if we’re facing another liquidity trap.
Weekly Timeframe:
• AUD/USD experienced a strong bearish move after reaching 0.6938 in September 2024, followed by a relentless downtrend to 0.6085 by mid-November.
• Since then, we’ve seen a three-week bullish push off the lows, suggesting a potential shift in sentiment.
• A higher low has been established, but the key question remains: Will buyers maintain control?
Daily Timeframe:
• A structural break above 0.6311 signals bullish intent.
• The market previously swept early buyers, forming a double bottom, before pushing back above resistance.
• Current price action is retesting this level, potentially building liquidity for the next leg up.
H4 Timeframe (Trade Execution Level):
• Price printed a higher low at 0.6371, and bullish momentum is attempting to reclaim the recent highs.
• A strong bearish retracement provided a potential early buy entry, setting up a high reward-to-risk trade.
• If price holds above the 0.6359 entry zone, we could see further upside targets.
Entry & Risk Management:
• Entry: 0.6359
• Stop Loss: 0.6371 (tight 5-pip stop)
• First Target: 0.6408 (1:6 RR)
• Final Target: 0.6446 (1:9-1:10 RR)
Market Psychology & Liquidity Play:
• Many traders chased the highs and placed stop losses below local support—these were swept out.
• A large bullish volume candle remains significant, hinting at strength in buyers.
• If the market sustains momentum, we could see a move toward higher resistance at 0.6446.
Conclusion:
AUD/USD is setting up for a potential bullish breakout, but traders must watch for confirmations on lower timeframes. If price structure holds, this could be a highly profitable swing trade.
Like this breakdown? Follow, boost the post, and drop your thoughts in the comments! Let’s see where AUD/USD heads next.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.