The Australian Dollar comes under more pressure next week, with fears of recession, bushfires and Coronvirus virus putting pressure on its recovery back up.
This nose dive is purely based off negative news/events, technicals are out the window.
The goal here is to wait, I see a very profitable move either way.
1) If News continues to provide negative, expect this hard floor area to give way to a 2009 Low price.
2) However, if things are reported to be getting better, expect a bounce move.
This is a concrete support level here, If it doesn’t hold, expect a big sell off waterfall, followed by a massive push back up.
Entry points
Gotta Trade this pair with caution and completely influenced by news. Sell Entry points place 25 pips below the strong support, and alternatively an entry long position set above yesterday’s open point candle.
Stops
Risky so stop losses will be around 40 pips. Using that concrete support as the Stop loss areas for both ways.
Take Profit areas
Long 0.70
Short 0.60
Leaning towards the sell, but I’ll let the markets choose which position to grab for me.
God luck