The AUDUSD has declined from its resistance level and the descend was halted by its support level which is enforced by its 200 DMA as visible in this H4 chart. We believe this pair will form a temporary bottom here at support and attempt to launch a rally back into its resistance level.
MACD has indicated that momentum has been weak and crossed into bearish territory. We expect another centerline crossover during the next rally which should be on weak volume. RSI has reached oversold territory and offer the final indicator for a pending change in direction.
We recommend an initial long position at 1.0490 with a potential second entry level at 1.0400. Should this pair breach 1.0440 to the downside we advise traders to hedge their initial long position with a short position at that level before adding additional long positions to this trade.
Traders who wish to exit this pair at a loss are advised to place their stop loss level at 1.0440. We do not use stop loss levels and will execute this trade as recommended. Place your take profit level at 1.0540.
