Price has started to bounce up nicely from our buying level. The plan today is to remain bullish above major support at 0.7332 (Fibonacci extension, Elliott wave theory) and we expect a bounce above this level to at least 0.7426 resistance, (Fibonacci retracement, horizontal swing high resistance).
Stochastic (55,5,3) has made a bullish exit meaning that a further rise can be expected.
Correlation analysis: AUD/USD has a strong positive correlation with NZD/USD which means they usually move together. We are expecting a rise on AUD/USD and a rise on NZD/USD which goes well with the positive correlation expected.
Buy above 0.7332. Stop loss at 0.7290. Take profit at 0.7426.
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