From D1 and H4 perspective, moving average show a downtrend with stochastic at overbought region.
AUDUSD has been trading in a ranging condition since 3rd week of July21 with strong support around 0.7320+- while for resistant around 0.7380+-. While we may observed there is a bearish flag pattern with price likely to retest again at the lower trend line before the price continues to be bearish.
Fundamentally the pair was a temporary bullish on last Friday US session due to bearish USD after released of less than forecast consumer sentiment at 70.2 of which is the lowest for the year of 2021. Such a movement may create a good opportunity for trader to look for sell opportunity from the top.
The Australia employment data is set to released at coming Thursday where the data is likely to be in a bad numbers, as the current rising case of COVID-19 especially at NSW region has been putting the region into a lock down since last month.
While for FOMC meeting minutes is set at Thursday at 2am MYT, where traders likely to get a clue from the FED on the timing for the bond purchase tapering, if it does, it may create some bullish movement on USD coming week.
Sentiment wise trader has been adding more on short position compared with last week as per COT report by CFTC.
With these factors add up, a breakout below 0.7300+- likely to be happen at coming week. If a success breakout of this previous support is broken, an impulse movement may happen till 0.7200+-.
Remarks from author
1)This analysis does not represent long or short trade immediately, it is solely on the author analysis
2)Trade at your own risk with proper lot sizing and follow your own trading plan
3)Risk management is always be the top priority
AUDUSD has been trading in a ranging condition since 3rd week of July21 with strong support around 0.7320+- while for resistant around 0.7380+-. While we may observed there is a bearish flag pattern with price likely to retest again at the lower trend line before the price continues to be bearish.
Fundamentally the pair was a temporary bullish on last Friday US session due to bearish USD after released of less than forecast consumer sentiment at 70.2 of which is the lowest for the year of 2021. Such a movement may create a good opportunity for trader to look for sell opportunity from the top.
The Australia employment data is set to released at coming Thursday where the data is likely to be in a bad numbers, as the current rising case of COVID-19 especially at NSW region has been putting the region into a lock down since last month.
While for FOMC meeting minutes is set at Thursday at 2am MYT, where traders likely to get a clue from the FED on the timing for the bond purchase tapering, if it does, it may create some bullish movement on USD coming week.
Sentiment wise trader has been adding more on short position compared with last week as per COT report by CFTC.
With these factors add up, a breakout below 0.7300+- likely to be happen at coming week. If a success breakout of this previous support is broken, an impulse movement may happen till 0.7200+-.
Remarks from author
1)This analysis does not represent long or short trade immediately, it is solely on the author analysis
2)Trade at your own risk with proper lot sizing and follow your own trading plan
3)Risk management is always be the top priority
Comment:
correction=Sentiment wise trader has been adding more on short position on AUD compared with last week as per COT report by CFTC.