Trading Scenario: We mentioned in our earlier analysis that 0.9030 could be a potential selling opportunity targeting 0.9025 & 0.8850. AUDUSD extended to downside from 0.9033 to 0.8925 initially and today it has hit the support 0.8855 which we mentioned and bouned off that level. It is now currently trading at 0.8930 which is our initial resistance on this pair.
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As we discussed 0.8855 provided a good support by giving AUDUSD a bounce of almost 80 pips from that level. We had a very bearish closing on weekly charts, which signifies there could be potential downward risk on AUDUSD. It engulfed previous 2 weeks price action and gave us strong bearish engulfing pattern.
We have a lower low and lower high on weekly candle , which signifies bearishness as well. Considering all these things in mind, we will be looking to sell the rallies on this pair.
AUDUSD has significant support at 0.8855. This level will play a crucial role on AUDUSD for any price extension to the downside.We have already seen price correcting higher after hitting the support at 0.8855. If we see any price being getting rejected at of our resistance level.. we will be looking to sell the rallies.
Entry Strategy: Selling rallies in downtrend at our suggested resistance levels.
Trade Suggestion: If price is able to hold below and reverse at 0.8975 to 0.9000 level, we will be selling targeting 0.8900, 0.8855 , 0.8760 followed by 0.8600.
Alternate Trade Suggestion: If price is able to find resistance at 0.8930 and reverse off, look to sell targeting 0.8900, 0.8855 , 0.8760 followed by 0.8600. ( Aggressive Trade )
Trend Direction: Bearish.
Trend Reversal Level: 0.9210
Key Support Levels: 0.8855, 0.8760, 0.8660, 0.8500.
Key Resistance Levels: 0.8930, 0.8975, 0.9000, 0.9040, 0.9100, 0.9140, 0.9230.