In keeping with the Aussie which is one of my favorite pairs, the Antipodean currency has retreated from the major swing high resistance level parked at 1.0612 lately, selling off over the last two days towards the 1.0400 level I mentioned from yesterday. In the process the pair formed a pin bar pattern off the dynamic support and daily 20ema which you can see in the chart below.
With the pin bar low being off the 20ema and role reversal level at 1.0400, I would be interested in taking longs on pullback towards the lows with tight stops underneath. My targets would be just shy of the 1.0612 highs offering a solid R:R play so bulls have have something here. On the other side of the fence, bears can wait for a price action rejection at the above levels on weakness to short for a move back down to 1.0400 so plays on both sides here.
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