From the weekly perspective, AU has reached the weekly resistance and rejected it yesterday, and we may see AU start to push to the downside next week.
From the COT perspective, hedge funds are bearish bias on AUD, during AU push to the upside, more shorts are opened compared with the longs they had opened, this implied that they are accumulating their short positions in order to sell at the higher price.
The proper way to approaching this pair is to waiting for the price break below the daily support area and retest it, then we can see a clear previous support now turned resistance. If the price is managed to do this, I will switch to 4h perspective looking for short confirmation, if the 4h will provide to me one of my rules, then I will take a nice short on AU with a good RR. Otherwise, the price may be rejected from the daily support and continue to push to the upside.
Remember, always reactive to the market instead of predictive it, this analysis is based on the technical and COT perspective.
Comment below let me know you thought on AU.
From the COT perspective, hedge funds are bearish bias on AUD, during AU push to the upside, more shorts are opened compared with the longs they had opened, this implied that they are accumulating their short positions in order to sell at the higher price.
The proper way to approaching this pair is to waiting for the price break below the daily support area and retest it, then we can see a clear previous support now turned resistance. If the price is managed to do this, I will switch to 4h perspective looking for short confirmation, if the 4h will provide to me one of my rules, then I will take a nice short on AU with a good RR. Otherwise, the price may be rejected from the daily support and continue to push to the upside.
Remember, always reactive to the market instead of predictive it, this analysis is based on the technical and COT perspective.
Comment below let me know you thought on AU.