Similar to NZDUSD and other USD crosses, we have witnessed a spectacular rally in AUDUSD too. From a technical point of view, price broke out strongly from a descending TREND LINE(Purple line in my chart). So, has the trend changed?
Well, I believe it's too early to assume that there has been a change of trend in AUDUSD.
These year-end breakouts on the back of low volume can't be trusted.
AUD being a risk asset is vulnerable to a violent BEARISH reversal if any sort of bad news resurfaces( e.g. US-China trade war, Iran conflict, Hong Kong, etc).
Also, 0.70 area was a strong support area previously which can now be a strong resistance zone.
Hence, depending on BEARISH PRICE ACTION in lower TFs, Traders can look for SELL entries between 0.7020-0.7050 with SL above 0.7100.
TPs can be set at 0.6950, 0.6870 respectively.
Well, I believe it's too early to assume that there has been a change of trend in AUDUSD.
These year-end breakouts on the back of low volume can't be trusted.
AUD being a risk asset is vulnerable to a violent BEARISH reversal if any sort of bad news resurfaces( e.g. US-China trade war, Iran conflict, Hong Kong, etc).
Also, 0.70 area was a strong support area previously which can now be a strong resistance zone.
Hence, depending on BEARISH PRICE ACTION in lower TFs, Traders can look for SELL entries between 0.7020-0.7050 with SL above 0.7100.
TPs can be set at 0.6950, 0.6870 respectively.
Note
WEEKLY CHART shows AUDUSD respecting the broken Support turned Resistance zoneTrade active
Three SELLs 0.7022, 0.7007 and 0.6995Note
We need a decisive break of the 100H EMA now for the sells to be safe.Note
Very close to first TP
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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.