With the current pressure of a strong downward trendline, AUD/USD entered the 5th downside cycle with a confirmation of the high test bar on 2 Nov. If today following with a bearish candlestick, we will probably see a hidden MACD divergence as well. The price could possibly retrace back to the double bottoms level at 0.716 (also ~Fib Ret 38.2%) or even further to the level of the overlap of Kijun-sen & Tenkan-sen at 0.7139 (also ~Fib Ret 50%).
Please note there was no price actions broke through the red cloud in the last six months.
Nice idea on AUDUSD and there may be potential gains as you have identified by going short. For our set up, we have identified the key resistance and support levels. Currently, price is approaching our first resistance at 0.7292. It is a horizontal swing high resistance, 100% Fibonacci extension and a 23.6% Fibonacci retracement. Stochastic is approaching resistance and we might see a corresponding drop in price. If a corresponding drop does occur, we may want to take a look at the 0.7017 support level. It is a horizontal swing low support.
Please take a look at our idea and share with us what you think.
Please take a look at our idea and share with us what you think.