Weekly Timeframe: The weekly timeframe shows that price has hit a major weekly demand area coming in at 0.80646-0.84601 with little to no interest currently being seen by the buyers. Let’s see what the lower-timeframes have to say about this.
Daily Timeframe: Further selling was once again seen on the Aussie yesterday forcing prices to print a fresh low of 0.83546. This move has drove prices even deeper into a daily demand area seen at 0.83147-0.84336 (located within the aforementioned weekly demand area).
4hr Timeframe: Considering that the AUS/USD is currently in a buy zone (see above) at the moment, the 4hr timeframe price action is showing very little obvious bullish strength.
The reason we use the word obvious here is because it only appears like the Aussie is not showing any strength (only our opinion). If we take a closer look we can see for the past few days price has been grinding south along the 4hr channel support. As the market declines, price is seen spiking north (see the pink trendline). This could be for two reasons. One is to fill any unfilled sell orders to continue selling, and two could very well be pro money buyers entering small batches of buy orders against this selling momentum, so once price hits a significant support on the 4hr timeframe, pro money will already be heavily long this market. Unfortunately though, we do not have enough historical data feed to see where such a support level is on the 4hr timeframe, so for the time being we’re watching 0.83500 and 0.83 for any sign of bullish intention on the 15/5 minute timeframes.
Buy/sell levels:
• Buy orders: Currently watching for lower-timeframe confirmation around 0.83500/0.83 (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Comments
Ghostrider7
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I agree with your analysis. We are also coming into a Monthly demand zone. I'm currently stalking this pair for a short term bounce. Overall though I think this pair goes much lower.