Will there be a SELL OFF in AUDUSD soon?
Similar to NZDUSD and other USD crosses, we have witnessed a spectacular rally in AUDUSD too. From a technical point of view, price broke out strongly from a descending TREND LINE(Purple line in my chart). So, has the trend changed?
Well, I believe it's too early to assume that there has been a change of trend in AUDUSD.
These year-end breakouts on the back of low volume can't be trusted.
AUD being a risk asset is vulnerable to a violent BEARISH reversal if any sort of bad news resurfaces( e.g. US-China trade war, Iran conflict, Hong Kong, etc).
Also, 0.70 area was a strong support area previously which can now be a strong resistance zone.
Hence, depending on BEARISH PRICE ACTION in lower TFs, Traders can look for SELL entries between 0.7020-0.7050 with SL above 0.7100.
TPs can be set at 0.6950, 0.6870 respectively.
Well, I believe it's too early to assume that there has been a change of trend in AUDUSD.
These year-end breakouts on the back of low volume can't be trusted.
AUD being a risk asset is vulnerable to a violent BEARISH reversal if any sort of bad news resurfaces( e.g. US-China trade war, Iran conflict, Hong Kong, etc).
Also, 0.70 area was a strong support area previously which can now be a strong resistance zone.
Hence, depending on BEARISH PRICE ACTION in lower TFs, Traders can look for SELL entries between 0.7020-0.7050 with SL above 0.7100.
TPs can be set at 0.6950, 0.6870 respectively.
Comment:
WEEKLY CHART shows AUDUSD respecting the broken Support turned Resistance zone
Trade active:
Three SELLs 0.7022, 0.7007 and 0.6995
Comment:
We need a decisive break of the 100H EMA now for the sells to be safe.
Comment:
Very close to first TP