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.

width=300

( Click On Image To Enlarge )

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.

Important Note:

  • 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 )