Fake out potentially incoming for the AUDUSD! Trade cautiously!
The aussie dollar continues to trade in a random walk manner this week, building up pent up energy for the eventual breakout of the channel that is formed between 0.74270 and 0.72877. As areas of values on both sides continues to build up for stop loss hunting by the market makers, a whipsaw like action could potentially form before breaking up to the upside.
BULL CASE
We can continue to look for longs on this pair for a sustained move upwards as it is our opinion that any downside could be limited and short-lived. There are two possible ways this could happen. Firstly, it could break up immediately from these levels to find more upside or it could fake out to the bottom before shooting back up quickly to the upside.
BEAR CASE
If this week ends in a bearish red candle, it is likely to form some sort of pinbar reversal candle. Any downside should be capped and extremely short-lived.
BULL CASE
We can continue to look for longs on this pair for a sustained move upwards as it is our opinion that any downside could be limited and short-lived. There are two possible ways this could happen. Firstly, it could break up immediately from these levels to find more upside or it could fake out to the bottom before shooting back up quickly to the upside.
BEAR CASE
If this week ends in a bearish red candle, it is likely to form some sort of pinbar reversal candle. Any downside should be capped and extremely short-lived.