The Australian dollar made an advance against most of its counterparts after the RBA released October’s stability report that highlighted a rate cut. also with a hawkish Fed in December, the sentiment provides a bearish perspective on this pair.
-The green and red long horizontal rectangles are drawn in to show resistance and support lines.
-The green being my support and red being my resistance.
– Bulls look for buy opportunities on the support levels and bears for sell opportunities on resistance levels.
-Bias:Bear

AudUsd Daily Chart

- price has since broken down through the level of support of just above 0.761 on an upward channel. by doing so, it failed to break through a key resistance level of 0.772200 - It then found support at a psych level of 0.75000. -Having had price retrace back to the 200 Moving average, it confirmed that we were losing bulls as the market failed to continue a series of lower highs and higher highs. -Currently the market is ranging between resistance and support levels of 0.74511 and 0.770000

AudUsd H4 chart

- Price almost hit the weekly bear target(WM1), which was also a key level of support of 0.750000(a psych level) - It then retraced back up breaking minor levels of resistance but failing at a key level of resistance around 0.76400 - I expect price to retrace back to a minor support level which lies within the fib zone.

AudUsd H1 chart

- Having had price retrace back to the 55 Moving Average, I am expecting to see a double top on the hourly chart. -A selling opportunity would then present itself in this regard at a level of resistance @ 0.76640 -Should price then break through the level of support at 0.76044, I will be looking for another selling opportunity at the role reversal. *Usually I use the M15 chart for entry. Should conditions be in your favor, in this regard, overbought stochastic for going short.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.