AUDUSD Trading Scenario:
AUDUSD closed as a Doji on weekly suggesting a potential reversal. On the daily charts the current fall from 0.9221 to 0.8840 move looks like a correction to the rise from 0.8316 to 0.9221.
As weekly closed as Doji and the price bounced off significant support level at 0.8855 and daily closing on Friday as a Hammer suggests that the price could move higher before it makes any further downward extension.
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0.9000 level will play a key role on this pair, which comes in at 38.2 fib level from its fall from 0.9221 to 0.8840, which gives strong resistance. So initially AUDUSD might target 0.9000 level .
AUDUSD is now moving in a minor bearish channel and it is still making lower lows which signifies bearishness on this pair.
However AUDUSD might face bear pressure at 0.9000 level for another downward extension.
- 0.9000 to 0.9030 will be critical on this pair, where potential resistance is held.
- 0.8855 is a very strong support on this pair, only break below that will push the pair much lower.
Support Levels: 0.8890, 0.8855, 0.8760, 0.8660
Resistance Levels: 0.8950, 0.9000, 0.9030, 0.9075, 0.9140
Trend Direction: Bearish
Strategy : Selling rallies on a pull back to 0.9000 level.
Suggestion: Look to go short if price holds at 0.9000 level targeting 0.8900, 0.8855, 0.8760 for a potential of 240 pips.
Alternate Suggestion: Look to go short at 0.8950 level if we get any price reversal targeting 0.8900, 0.8855, 0.8760 ( Aggressive )