AUDUSD trading idea for the week of 7-May-2018

AUDUSD traded around 0.7500 which is an important area of support. At times the dips went as low as 0.74725. However the break below the support was not sustained and hence the pair bounced back above 0.7500. When we look at the weekly chart, this has been translated into a hammer.

AUDUSD Weekly

Trading preference
The hammer is bullish sign, therefore it is possible that the pair can go to test the uptrend line before continuing its fall towards support and even below after that.
The preference of trading at this point is to wait for the pair to test the uptrend line and form a bearish candle on the daily chart, or the pair needs to break below the bottom of the hammer. That will be a good set-up to sell the pair.


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