The Australian dollar is preparing for a bounce against the US dollar and the setup I want to trade today is a small scalping one, in the sense that the consolidation area that you can see above is actually a bullish one. This is coming despite the fact that market seems to be really bearish with the Aussie pair lately.
Even though the risk-reward ratio is not a good one, in the sense that price now is somewhere in the middle of the range, I would look for a long trade with 0.7460 stop loss to target a move above 0.77 sooner rather than later.
From a fundamental point of view, we may say that there is no other news more important than the NFP tomorrow and such a spike higher ideally will come before the NFP. Or maybe the market will decide to consolidate ahead of the jobs data.
In both cases, the scope for a bounce higher is here, so a long trade is recommended.
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