The AUD/USD currency pair registered 5-day winning streak and continues to taking bids mainly due to the risk-on market sentiment. The pair has succeeded in recovering around 25-30 pips from the session lows and reached near the high end of its daily trading range at 0.6479 as most of the governments showing a willingness to reopen their economies. On the other hand, the latest pullback of the US dollar keeps the currency pair gains limited.
Currently, the AUD/USD is trading at 0.6483 and consolidates in the range between the 0.6433 – 0.6483. Earlier in the day, the risk sentiment got support from the hopes of easing lockdowns in the major economies, including Australia, mainly due to the death toll dropped to its lowest level in the month. However, global scientists are still struggling to find the vaccine of the coronavirus (COVID-19).
Technically, the AUD/USD pair is gaining strong support around 0.6443, and closing of bullish engulfing pattern over this level may drive some buying in the Aussie dollar pair. The 50 EMA and MACD both are in support of the buying trend while an upward trendline on the 4-hour timeframe is suggesting chances of bullish trend continuation in the market. The Aussie dollar may continue trading bullish until next resistance area of 0.6536 and 0.65736. Hence, we opened a buying trade with an entry price of 0.64736.
Entry Price: Buy at 0.64736
Take Profit .0.65736
Stop Loss 0.64136
Risk/Reward 1.67
Profit & Loss Per Standard Lot = -$600/ +$1000
Profit & Loss Per Micro Lot = -$60/ +$100
