The AUDUSD is a market that I’ve been watching closely the last few months, because it is currently displaying beautiful, stable trending conditions. I am definitely only looking for buying opportunities here to flow in with the core uptrend momentum.
The current situation here is the AUDUSD market has just corrected from new highs, back into the mean value area. The outer layer of the mean value (the 10 EMA) has been acting as a nice termination point for countertrend retracements in this uptrend. An Indecision candle formed as price stalled here yesterday, potentially gearing up for the next move higher.
It would have been nice to have seen a deeper correction into the mean value and also test an old resistance level, and confirmed as new support via bullish price action, but this trend momentum looks strong and we may not get as deep a correction as we would like to.
So I am watching for a bullish breakout past the highs to consider long positions, or if that doesn’t happen, I’ll be waiting and watching for bullish price action signals off that old resistance level on deeper corrections.