Trade Idea: AUD/USD -Buy At 0.7935

AUD/USD - 0.7999

Most recent candlesticks pattern : Hammer

Trend : Up

Tenkan-Sen level : 0.8002
Kijun-Sen level : 0.8030
Ichimoku cloud top : 0.7984
Ichimoku cloud bottom : 0.7954

Original strategy : Buy at 0.7890, Target: 0.8000, Stop: 0.7840

New trading strategy : Buy at 0.7935, Target: 0.8035, Stop: 0.7885

Although the Australian dollar did extend the decline from 0.8156 to 0.7905 (our long entry was 0.7890), the currency pair found decent demand right above the calculated support at 0.7896 (1.618 times projection of the fall from 0.8156 to 0.8024 measuring from 0.8109) and staged a strong rebound from there, suggesting the fall from 0.8156 has possibly ended and gain to 0.8024/30 (previous support turned resistance, current level of Kijun-Sen as well as 50% Fibonacci retracement of 0.8156-0.7905), however, it is necessary to see a clear break above the 61.8% level at 0.8060 to confirm low has been formed, then test of 0.8109 minor resistance would follow. Looking ahead, only break of this resistance would signal the pullback from 0.8156 has ended, then the upmove from 0.7777 would resume later.

Therefore, we are still looking to buy aussie on pullback. In the event the currency pair drops below 0.7850, this would indicate upmove is not ready to resume just yet and recent choppy consolidation would continue and decline to 0.7800 or even retest of 0.7777 support cannot be ruled out.