Can AUDUSD break the short term trading range??
As we can see from the weekly chart, last week's candle represents a classical strong rejection candle on the area of Monthly PP at 0.7528. We expect that this area will be very important for this week too, as the bulls now may be keeping an eye on it and they can use it as initial place to start a strong move on the upside which may break the trading range the pair has been to last week and test the Monthly R1 at 0.7644. On the Daily and 4 Hours chart, the last week's action looks not very clear, with the pair moving in no clear direction within the established range. However, there were some signs of strength of support in the area of Monthly PP as discussed above so we anticipate a test of this area one more time as "Last Kiss" move and then a bullish move, which we will try to catch if the price action on this area gives enough signals that it will go up. The move up and our analysis in general will be invalidated if the price manages to close below the Monthly PP on the daily chart and it reaches the lows of previous week, marked on the green line.
Order cancelled:
AUDUSD broke the narrow trading range it was trading last week with the bulls being very strong and pushing the price very fast on the upside to the Monthly R1 area, where as it seems, price has encountered some resistance and bears are trying to kick in. We had a buy limit pending order at Monthly PP 0.7528 but the price gapped up on the market open on Sunday and this way our order was not triggered. If price continues to have difficulties on the Monthly R1 area again this week and does not manage to break it, we can see again a bearish move to test the Monthly PP.
Order cancelled:
On Wednesday the pair had a strong bullish run and it managed to break and also close on the daily chart above the resistance at Monthly R1. Today (Thursday) the pair lost some of the previous gains and at the moment of writing the price action is happening just above the Monthly R1 which we believe now is turned to support. It may represent a good trading opportunity for long position for the next week.