AUDUSD is starting to trend lower showing the recent strength in USD. However, the price has recently approached a major support level.
Is it the right time to sell the downtrend or should you wait?
Today we’re going to discuss AUD/USD as we are expecting the market to continue to trend the downside.
The reason is because the US Dollar has been so strong lately, and it pushed AUD/USD prices lower.
We don’t want to be a seller right now because of the prices from previous structure lows.
Institutions felt like AUD/USD is on a good level to be a buyer. The reason is the consolidation area where they would have a high volume traded level. That’s why the price moved higher.
The price is starting to get an indecision candlestick, which could cause it to push back to the upside. A daily retracement could start forming as well, which is great because we’re looking for the price to come back and enter on the trend or the next lower high.
I’m looking for the price to come back up to 77.41. We currently have another high volume level combined with the previous structure support. If we can get back up to a higher level, that would be a great area to short the market again.
We also have multiple confluences on the 77.41 area. If the price comes back up to the 77.41 area, we’re going to look at that market to go short again on AUD/USD.
Alternatively, if the US Dollar will be extremely strong and Aussie extremely weak, then the likelihood is that we might not get that pull back. Instead, we might continue down.
If that’s the case, then we need to wait for a pullback The price was at support; will it turn resistance if it does start to break down?
AUD/USD is on the cards for some further potential downside. Look for key areas of support and resistance. Wait for the price to pull back from an area of support.
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