Buy order at 0.7150 filled - now targeting 0.7241...

For those who read our previous report on the Aussie (see link below) you may recall us mentioning that our team had placed a pending order to buy at 0.7150. This was based on the convergence of a H4 Quasimodo line at 0.7145 and a H4 channel support extended from the low 0.7299. As can be seen from the chart, our order was filled during yesterday’s sessions and has since then rallied beautifully. We have just recently taken 50% of our position off the table (just below the 0.72 handle) and have reduced risk to breakeven. Well done to any of our readers who jumped aboard this one! Ultimately, we’re looking for this rally to continue due to the following reasons:

• The commodity currency is now seen testing weekly demand coming in at 0.7108-0.7186.
• Daily price shows room for this market to continue advancing north up to the underside of daily supply at 0.7259-0.7226.
• Beyond the 0.72 handle, the H4 resistance level at 0.7241 is our next take-profit target (sits within the aforementioned daily supply zone).

Our suggestions: Other than our live position from 0.7150, neither a long nor short seems attractive at current prices.

blog.icmarkets.com/tuesday-24th-may-daily-technical-outlook-and-review/