The Commitment of Trader reports highlight a substantial long position for the commercials on the Australian Dollar suggesting the currency could strengthen. Now the #AUDUSD has completed the reversal pattern, could we look for long opportunities?
Watch the video to learn more…
If you missed out on yesterday’s week ahead analysis which can be found here. We discussed the opportunity to be a buyer of the Australian Dollar this week. The Commitment of Trader reports show the commercials increasing long contracts at current prices showing they see value at this level. This could swing the AUDUSD price long.
In the video we discussed this inverse head and shoulders pattern and the potential for the market to reverse if it completed. The current daily price breaking through the neckline shows a strong possibility of it completing. If this price was to then return back to the neckline and find support we could look for a long opportunity back to the major swing level above.
The 4hr Chart
This time frame also shows the market forming highs highs and higher lows. If the daily is in an uptrend and in an impulse phase we should see the uptrend conditions continue to form for the pair. If the price forms bullish price action in line with swing trading strategies at these highs we can look for long opportunities.
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