2 days ago, we analyzed this pair and pointed out, that this pair could start its phase 1 of un uptrend, after trend line bounce. We suggested to wait for a pull back to 50% Fibonacci, but price retraced even lower back to 78%.


Lately we need to be prepared for a deeper retracement and lots of overshooting thorough support and resistance, so we need to act accordingly considering our money management and trade with a bit bigger stop losses and consequently adjust our position seize.

So yesterday we got second test of trend line, today price again head back up. One who entered at 50% or a bit lower could still be in this trade if it applied SL round average daily range for this pair, which was for the last week round 190-200 pips.

On attached chart, I marked other entry options if price will follow my arrows. If you are already in, you could consider pyramid trading, adding to an existing position and move SL of first position to a break even at the same time.

There are China GDP q/y and Industrial Production y/y news on Monday. In Australia there is no red level news.

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