AUD/USD: is reaching near a key area of support on the weekly and monthly chart at 0.7500. Although price has not yet touched 0.75 price point, the pair is starting to create reversal signs on the daily chart.
One of the reasons i like this trade is because price has now come to a Bullish Engulfing on the weekly chart and has not broken the candle pattern. The trade will be invalidated if price closes under the Bullish Engulfing with a strong Bearish move.
On the daily chart price created a Bullish Engulfing as well which is where our entry will be placed. Our entry is at the bottom of the Bullish engulfing ( 0.75498 ).
Our stop loss is a bit under the wick of the Bullish Engulfing ( 0.75160).
The first target for this trade is set at (0.765) at the weekly Bearish Engulfing candle pattern. Once and if the price breaks above that area and closes with a strong Bullish move, we will then continue onto the second target of (0.7750).