It's a risky trade , stops can very likely get hit. I am staying on the long side, because the dominant trade is up and we are still in risk aversion ( downside for AUD remains ). However, the month to month GDP growth need to be positive, else this trade unlikely to work.
From recent price action, It's clear that 1.94200 worked as resistance, then 1.93730 created a lower high , perfect recipe demonstrating weaker bulls, but however since no new low is created yet, it could as well be a sideways consolidation to burst upwards.
Since we have news, I would cut usual lot size and use wider stops and after news release flip to the direction of the prevailing trend.
From recent price action, It's clear that 1.94200 worked as resistance, then 1.93730 created a lower high , perfect recipe demonstrating weaker bulls, but however since no new low is created yet, it could as well be a sideways consolidation to burst upwards.
Since we have news, I would cut usual lot size and use wider stops and after news release flip to the direction of the prevailing trend.
Commento:
I would stay on the long side, as long as the descending channel is broken
