Bullish outlook on EUR/AUDA low test close at a previous level and oscillator bullish divergence suggests potential upward rally on EUR/AUD.
Lowtest
#AUD/USD #bullish precursorAUD/USD has formed new structure recently showing signs of a trend reversal. Whether this continues to hold longer or not is for price action to reveal. As for now, a potential bullish continuation is brewing after what seems like a shall retracement. The close of price action by end of day as a low test bar above ~0.7250, where price has found support, will further confirm potential bullish intentions in price. Other than that the reasons for going long are:
rejection of 50 ema;
a rising 50 ema;
rejection and close above 0.382 Fibonacci level; and
convergence on Stochastic and RSI indicators.
entry - above high of low test bar
stop loss - below low of low test bar
target - at or above previous high/resistance area around 0.7400
GBPAUD - Targeting 2.0000 and BeyondSlight consolidation over the last two days from the election hype enabled a retest of the top side of the symmetrical to occur. This coincided nicely with the 50EMA and the 50% retracement level. Taking in the technicals, we're looking here to target the 2.000 level. However considering generally weak Aussie economic sentiment and a sigh of relief from the London after the UK elections, we could see this go further.
What's next for USD/JPY?USD/JPY broke above the December 2014 high and closed well below. Recent price action appears to be trending after a consolidation breakout , near 120.40-120.65 , to the upside and break above , also, above the falling trend line drawn over previous highs . A possible retest of this trend line which lies in confluence with the 20 ema , a previous horizontal (now support) level (at ~120) and the 50% retracement with the sight of low test bar/hammer/reveral pin bar would be a strong signal to take the trade long . Succinctly, waiting for bullish signs at the next higher low .
Buy opportunity on CHF/JPYA low test close on CHF/JPY presents an opportunity for a long position. Today's low test price bar has tested the 114.70 level and is likely to close above it as well as above the 50% retracement and the 20 ema. There is, adding to this setup, supportive hidden bullish divergence (trend continuation divergence). The Stochastic indicator is in oversold territory and is due for a reversal. .
Although the daily chart demonstrates bullish signs, the weekly price action is still in the pullback phase.
entry - above low test close
stop loss - below low test close, or 50 ema
target - initially at previous high (117), and above
Another bullish JPY pairThe clarity of higher highs and higher lows makes this pair stand out boldly in this aggressive uptrend. Price has retraced into previous resistance (now support), and rejected the 10 ema, 0.618 Fibonacci level and is within the bullish trend channel giving a low test close appearing ready for a rally north.
Entry - above today's low test
Stop loss - below today's low test
Target - previous highs (~99.80) and above
A bullish CHF/JPYThe moving averages on CHF/JPY display shapely geometry holding the recent uptrend. There is healthy convergence on both Stochastic and RSI too. A pull back into and just short of ~115, but bouncing off the 0.382 Fibonacci level, has given what will be a bullish low test close implying a long trend continuation setup. Today's low test has also narrowly missed the 10 ema. Price is supported affirmatively above the 10 ema looking aggressive.
Entry - above today's low test
Stoploss - below today's low test, support level (~115) or 10 ema
Target - previous highs at ~117, or ~119 for long term profit taking
Long again on USD/CADBeing in a daily uptrend, USD/CAD has strongly rejected a previous support level (1.0860), and the 0.5 and 0.618 Fibonacci level in its pullback and closing on Friday 29th August 2014 above the 50ema as both an outside bar and a low test giving well-founded signs of imminent bullish continuation.
A drawback to this trade would be that the weekly chart is still in a pullback.
Entry - above Friday's close
Stop loss - ideally below Friday's close
Target - initial level at previous highs
