dnsmith

Strong down trend continuation

Short
FX:AUDUSD   Australian Dollar / U.S. Dollar
AUDUSD is at a critical decision point, but the current down trend is extremely strong.

I have outlined two possible scenarios.

1. We continue the down trend - As identified the current down trend is very strong, if we break through the .716 zone, the next support is at the .68 zone. Whilst a short term move to the upside could see a test of the .725 zone, a down movement from here will be an easy trade with a trailing stop.


2. We see a test of the .716 zone,
- A move to the .725
- Retest of the .716
- Break through the down resistance
And we are seeing a change in trend direction
I see this as likely but very risky

Wait and watch here
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