Taking a more quantitative approach to the Aussie today;
After selling off 13 of the last 19 days and shedding 450pips in the process, the Aussie took back almost three days of losses with an impressive bullish engulfing bar. This is the fifth largest bull bar on an open to close basis for the year.
To date, we've only had three other bullish engulfing bars opening below the 20ema this year. Out of those three, two of them were followed by bear days. If the history and the numbers have their way, today will be a bear close.
Intraday pullbacks to the 1.0250 former range resistance area could be a solid location for short term bulls to take another jab at the 1.03 highs today. Bears can look to sell around 1.0330 on weakness, which is the daily 20ema and July 5th swing high, but there are price action plays for both sides here.
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