However I'm not just going to be buying AUDUSD, but also AUDNZD as a lower risk trade due to the highly correlated tendencies of this ccy's
Here shows the weekly chart with very support candles and with Stochastics very smoothly signalling a move higher. Both previous oversold stochastics signals have yield great results, same with RSI.
Now a look at the candles, here is the inverted hammer in theory
Here is the weekly set-up
We can see clearly from this how similar the reversal pattern is to the current AUDUSD set-up.
As it stands, the AUDUSD has just popped over 0.91, but as I started typing we were 0.9090, and this is where I bought in. As can be seen from the chart there is a horizontal level at 0.9385, at this will be my target +/- 15 pips.
It also coincides with key fib levels of the move down and seems like a sensible target representing good R:R and strong probabilities. The AUDNZD will follow the AUDUSD but with a small beta and so at 1.1650 I'm getting long for a move to 1.18.
These trades are risk positive and this is the major headline risk with this trade - a stock sell-off will definelty hurt this trade but China seemingly won't any more. After a miss in CNY GDP the AUD has still managed to rally and this for me shows a fundamental shift in AUD outlook. For these reasons stops discretionary but somewhere around previous swing low 0.8950 or so.