Last week we expected bullish move for the AUDUSD and the pair offered this on the first part of the week. Price opened a bit above the Monthly PP where we had planned our entry so we were out of the action for the pair with no position on the market. AUDUSD fulfilled our expectations and tested the Monthly R1 area, broke through it but did not manage to keep above this area of resistance and wiped out a large portion of the upside move. Based on the reaction of the Monthly R1 as a strong resistance last week, we will anticipate a new test from the bulls this week and then a strong action from bears on this area. We will expect for the price to reach this area and then if it shows signs of weakness we will try to get a short position on the market. Our analysis also are backed by two strong resistance lines where we think bears will be waiting to fight the price down. Our analysis will be invalid if the price invalidates Monthly R1 and the trendlines which are expected to act as resistance.
Note
Price is moving very slowly on the first part of the week, making very short move from the opening price on Sunday. The direction of the move is on the upside as we expected and we will be waiting for a possible test of Monthly R1 where we think price may find resistance. Depending on the price reaction on this area and trendline, we favor a bearish move as next higher probability scenario. If price action unfolds like this we will try to initiate a short position on the pair.Note
The pair had a bearish week, with the price now approaching the M_PP at 0.75285 where it may find resistance. Price did not reach the level where we planned a possible trade so we were flat on the pair the whole week. We will watch this structure closely as an area of interest on the Weekend analysis on Sunday as this area may serve as support now.
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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.