Trading Scenario: AUDUSD seems still struggling at 0.9100 key level. As we discussed in earlier posts that 0.9100 is 78.6 fib level from its fall from 0.9381 to 0.8058, which is a key level to watch. We must be cautious on 0.9100 level, there could possibly be a Lion In The Sand.
If we look at 4 Hours chart it looks to be a bearish pennant formation, so more likely AUDUSD might be coming to the end of uptrend. We will keep at note of this in our mind as bigger picture is always important while trading.
Our scenario is if price was able to bounce off at 0.9050 support level doors will open up targeting 0.9100, 0.9173, 0.9340. If price was not able to sustain above 0.9050 and breaks below 0.9000 doors will open up targeting 0.8950, 0.8900, 0.8850
AUDUSD has significant support at 0.8850 level, any break below 0.900o will be targeting 0.8850.
Important Note: 0.9100 is a significant key level for this pair.
Entry Strategy: Look for the bounce at 0.9050 to go long or break below 0.9000 to go short
Trade Suggestion: if price was able to bounce off at 0.9050 support level go long 0.9173, 0.9340
Alternate Trade Suggestion: If price was not able to sustain above 0.9050 and breaks below 0.9000 go short targeting 0.8950, 0.8900, 0.8850
Trend Direction: Bullish
Weekly Trend Reversal Level: 0.8900
Key Support Levels: 0.9000, 0.8960, 0.8900, 0.8850, 0.8800
Key Resistance Levels: 0.9100, 0.9230