After some mixed data coming out of both the US and Australia yesterday the aussie remained consolidated in a rectangle formation which was broken out after the US released rather poor looking data and the only thing propping the Dollar up was the 12.8 gain in the Philly Fed Manufacturing Index. USdollar losses were quickly gained.
Today the aussie is set up for a small long trade buy above .74900 and TP range is between .75400 .75650.
With a rectangle set up the take profit will be the height of the rectangle itself and as you can see on the chart TP zone is also a resistance zone. A close below the height of the rectangle will render this set up invalid and trade should be closed or a sl should be positioned under the bottom of the rectangle.
Just remember money and risk management is the most important aspect of trading . ( there will be posts coming up all about money management in the future) so stay tuned by signing up to the free news letter 🙂