Trade Idea: AUD/USD - Buy at 0.7935

AUD/USD - 0.7989

Most recent candlesticks pattern : Hammer
Trend : Up
Tenkan-Sen level : 0.7979
Kijun-Sen level : 0.8030
Ichimoku cloud top : 0.7987
Ichimoku cloud bottom : 0.7954

Trading strategy : Buy at 0.7935, Target: 0.8035, Stop: 0.7885

The rebound in Australian dollar 0.7905 suggests the decline from 0.8156 has possibly ended there and upside bias is seen for 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, we need to see a firm break above the 61.8% level at 0.8060 to confirm this view and bring test of 0.8109 minor resistance. Looking ahead, it is necessary to break this resistance to signal the correction from 0.8156 is over and upmove from 0.7777 would then resume next week.

In view of this, we are still looking to buy the currency pair on pullback. Break of 0.7890/00 would risk further fall towards 0.7850, however, only below there would indicate upmove is not ready to resume and decline to 0.7800 cannot be ruled out, however, key support at 0.7777 would hold.