Hello Traders,
Here is the Top-Down Analysis of AUDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Price faced rejection at monthly resistance and dropped for correction, we expected correction to be near 0.382 Fib level on last monthly bullish impulse however price dropped till monthly resistance now turned supported and moved to the upside. Price returned back to test monthly resistance last week. We can expect a rejection to the downside.
W > Price dropped till 0.618 Fib level on weekly bullish impulse for correction. Price has dropped to test this level 5 times since September but unable to break it. We can see bearish divergence.
D > Price moved up making HH and HL and we have a strong supply zone now turned as demand zone between 0.7300 and 0.7285 which can pause price in its downward move. We can see a W formation and its neck can be our first bearish target if price breaks the 0.7285 level to the downside. Neck of W also coincides with 0.618 Fib level on last weekly bullish impulse.
As per COT AUD saw addition of both Long and Short, improving net positions (now in -ve). We have seen closure of Long and addition of Short in last couple of months, making net positions move from 16K to -05K. AXY ended in a Doji during the said period but strengthened to test monthly resistance again last week, we can expect AXY to weaken this week.
4H> We can see rejection to the downside with price creating a LL and LH, creation of next LL will confirm trend reversal to bearish.
Pair Correlation > AUDUSD has positive correlation with NZDJPY, NZDUSD, AUDJPY, AUDCHF and NZDCHF and negative correlation with EURAUD and EURNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of AUDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Price faced rejection at monthly resistance and dropped for correction, we expected correction to be near 0.382 Fib level on last monthly bullish impulse however price dropped till monthly resistance now turned supported and moved to the upside. Price returned back to test monthly resistance last week. We can expect a rejection to the downside.
W > Price dropped till 0.618 Fib level on weekly bullish impulse for correction. Price has dropped to test this level 5 times since September but unable to break it. We can see bearish divergence.
D > Price moved up making HH and HL and we have a strong supply zone now turned as demand zone between 0.7300 and 0.7285 which can pause price in its downward move. We can see a W formation and its neck can be our first bearish target if price breaks the 0.7285 level to the downside. Neck of W also coincides with 0.618 Fib level on last weekly bullish impulse.
As per COT AUD saw addition of both Long and Short, improving net positions (now in -ve). We have seen closure of Long and addition of Short in last couple of months, making net positions move from 16K to -05K. AXY ended in a Doji during the said period but strengthened to test monthly resistance again last week, we can expect AXY to weaken this week.
4H> We can see rejection to the downside with price creating a LL and LH, creation of next LL will confirm trend reversal to bearish.
Pair Correlation > AUDUSD has positive correlation with NZDJPY, NZDUSD, AUDJPY, AUDCHF and NZDCHF and negative correlation with EURAUD and EURNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX