Trading Scenario: As per our weekly analysis AUDUSD proved to be bullish by breaking 0.9000 key level and is trading just above that. Will Bulls maintain their battle from this point is a big question. AUDUSD is now in a Big Battle Zone 0.9000 to 0.9100. But as we look at price action it looks to be firmly heading up and staying above 0.9000 key level of support now. In this zone of 100 pips it is going to come close to bearish daily trendline which could be key test for its continuation of uptrend.
As we look into yesterday on AUDUSD it has not made much of a pull back, it holded o.8950 support and bounced of that to 0.9000 level and holding relatively firm above that. Now our scenario in terms of trading this pair is to go long above this key level of support 0.9000 targeting 0.9100 initially.
More conservative approach is to look for a pull back to 0.8850 and 0.8900 levels, where we have significant support and also Bullish channel support as well. Going long from this level will give more good risk to reward ratio, targeting 0.9000 & 0.9100 level as initial targets.
If AUDUSD is able to break 0.9100 level it will push to 0.9186 & 0.9336.
Alternate Scenario: If price fails to trade above 0.9000 level, we could see a fall to 0.8850 to 0.8900 levels. But going short at that point will be a very aggressive counter trend trade.
Entry Strategy: Buying dips in an uptrend at support levels, while market trades above trend reversal level.
Trend Direction: Bullish
Trend Reversal Level: 0.8600
Key Support Levels: 0.8890, 0.8840, 0.8800, 0.8760, 0.8700
Key Resistance Levels:0.9000, 0.9100, 0.9230