Dear traders trading price action
For those of you, who are still in a long AUD/JPY trade from yesterday, there are no signs for getting out of this trade. Today we have another Aussie pair that is showing bullish characteristics. Namely, this is AUD/CAD. A few things I need to make clear before continuing with the analysis of this pair. First of all, we are in a bearish trend from a longer-term perspective. This automatically means that all long positions carry higher risk. In general I prefer to go with the trend. But at the same time, this pair is just standing on top of a support level- 0.9500. This translates into more buy orders and traders taking profit around this level. The second factor we need to consider is that we have noticed a pin bar forming around those levels. The daily candle is resembling a pin bar and the rejection of the support area gives us further conviction in an imminent change of trend or a small correction.
For the more aggressive traders I believe this could be a suitable position to enter a long trade. The entry point in such a scenario should be 0.9535. The stop should be placed just under 0.9485. The initial target for this trade should be at 0.9600. But if price action is not showing signs of exhaustion, the secondary price target should be 0.9725.