AUDUSD has been in a bullish trend since Jan 2022. We recently made a new swing high on the pair based on the H4 analysis. The pair has also been respecting a trend line to the downside that has acted as support since Jan this year. A look at price action today indicates that we are about to hit that trend line, a fair touch right below the 61.8% fibonacci PRZ level as illustrated.
My opinion is that we will have a rejection to the upside off the trend line and seek highs all the way to the -27% extension.
However, if one is looking at patterns, the daily/ weekly time frames indicate that we had a strong Wammie (double-bottom) which catapulted price to the recent highs and might provide a pullback all the way to the neckline of the same. If this holds, I will be comfortable shorting the pair on the intra-day to around 0.72650.
My swing strategy: take on buys if we have a structural shift at the trend line/61.8% fibonacci and aim for the -27% extension. Short term: take on sells if price continues with the current momentum and breaks the 61.8% fib to the downside with no shift in structure. Aim for 0.72650 as the key daily level where price is bound to be gravitated into.