From the weekly perspective, price is approaching to the weekly resistance before it going to the downside since we have a bearish impulse followed by a deeper correction and expect a next bearish impulse to the downside from the weekly timeframe.
From the COT perspective, hedge funds are bearish bias on the AUD, more short opened than the long they had opened during AUD push to the upside, this implied that they are accumulating their short positions in order to sell at the higher price.
The proper way to approaching this pair is to waiting for the price break below the new daily support and retest it. If the price managed to do it, I will switch to 4H perspective, and waiting for the market to provide to me one of my rules then I will take a nice short on AJ with a good RR. Shorting at the current price is not a smart way, because the price may be easily rejected from the new daily support and continue push to the upside.
Always reactive to the market instead of predictive it, this analysis is based on technical and COT perspective.
Comment below and let me know your thought on AJ.
From the COT perspective, hedge funds are bearish bias on the AUD, more short opened than the long they had opened during AUD push to the upside, this implied that they are accumulating their short positions in order to sell at the higher price.
The proper way to approaching this pair is to waiting for the price break below the new daily support and retest it. If the price managed to do it, I will switch to 4H perspective, and waiting for the market to provide to me one of my rules then I will take a nice short on AJ with a good RR. Shorting at the current price is not a smart way, because the price may be easily rejected from the new daily support and continue push to the upside.
Always reactive to the market instead of predictive it, this analysis is based on technical and COT perspective.
Comment below and let me know your thought on AJ.