Trading Scenario: As we mentioned in yesterday's analysis, AUDUSD bounced off from the channel support at 0.8900 and broke above 0.9000 key level but was not able to make a new high. We have to take into observation that it has not yet made a Lower Low either. AUDUSD has now marginally dropped below 0.9000 level. AUDUSD is facing bears pressure in 0.9000 to 0.9050 region. It is still in a bullish channel and now coming closer to it for another test.
As we look into charts AUDUSD is now making a bullish correction. By keeping in mind that this pair has not made a new high and has not breached bullish channel support, this tells us that AUDUSD is waiting for specific direction to build momentum. Momentum will come into place once it is able to break above daily bearish trendline coming in the region of 0.9000 to 0.9050 or if it it breaks below bullish channel support which comes in at 0.8950.
AUDUSD has 100 pip indecision range, we suggest to avoid trading this pair in this region, until it gives us clear direction and to join the trend.
If AUDUSD breaks above daily bearish trendline at 0.9050 level, doors will open up targeting 0.9100, 0.9236 & 0.9325. Alternatively if AUDUSD breaks below 0.8950 where bullish channel support comes in, that will open up doors targeting 0.8900, 0.8850 initially. If it breaks the key support level of 0.8850, the price may push to 0.8600 levels.
Important Note: AUDUSD has significant support at 0.8850 level.
Entry Strategy: Wait for the price to break either 0.8950 to go short or to break 0.9050 to go long.
Trend Direction: Bullish
Trend Reversal Level: 0.8600
Key Support Levels: 0.8950, 0.8900, 0.8850, 0.8800, 0.8700
Key Resistance Levels:0.9000, 0.9100, 0.9230