Last week we had a very strong bearish price action on the AUDUSD pair as the price action now is happening outside of the inclining channel on which it used to move for a very long time. As we can see from the weekly chart, we have a very clear bearish flag pattern and from this we can conclude that now we may have a very strong bearish action. Based on this we will look to get short on the pair for this week, with entry target around M_PP if the price manages to get up to there. If the move continues down without reaching the M_PP we will then expect a new test of the M_S1 where we will look for the possibility for short trading positions.
Note
As we had planned on the weekend review, the pair gave an early opportunity to enter short after a test from below of the M_S1 where we could initiate a short position. The move then continued downwards and now is approaching the M_S2 support area so it will be interesting to see if this area will be strong enough to hold the bears strength. We will be keeping an eye on the price reaction when it reaches this area, so we will be looking for bulls action and try a possible long position.Note
AUDUSD price is now approaching the M_S2 area of support where the previous strong bullish trend was initiated exactly at this support. History may repeat itself but for this week we will not take any position in the market, we will watch only how the price will react when it reaches this area. This area will be an important structure to analyze on Sunday Analysis for possible entries/exits depending on price movements.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.