- AUD/USD bulls seeking a restest of the prior daily support structure.
- Price is starting to break up from an hourly accumulation phase.
AUD/USD is primed for a trade set-up to target an area of daily confluence that would be expected to act as a resistance on first attempts.
The following is a top-down analysis of the daily and hourly market structure and recent price actions that arrives at a bullish conclusion and prospects for a trade set-up.
Daily chart
The daily chart shows that the price is supported in the low 0.73s and moving within a sideways range between there and the resistance in the high 0.73 areas.
The 10 EMA aligns with old support and a 50% mean reversion level in the 0.7360s would be expected to be retested in the coming sessions.
Hourly chart
From an entry point of view, the price is leaning on the 10 EMA's vicinity but momentum is stalling which enables bears to seek a discount from a lower entry point.
The 0.7345 prior highs could act as a supporting level from which bulls will look to engage from.
A stop-loss placed below 0.7330 targeting the 0.7360s offers a 1:2 risk to reward ratio.
