AUDUSD - More downside for the coming months
After the crash of 2008, Audusd started a rally that lasted for more than two years. Then the market moved sideways, in a wide range for another two years. A year ago, a downtrend started. The oscillator shows a hidden divergence, which points out that the rally at the beginning of the year (announced by a huge bullish divergence ) is just a correction in this bigger downtrend.
On the monthly chart it is easier to see why I chose the red rectangles as important support levels
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Note that at all the support areas we find important fib levels. I'm sure there are even more fib levels, I chose to draw only the most important. My plan is to add using the daily and the 4H chart and build up a position. The first level where I am going to consider wether to continue with my bearish bias or not is at the last swing low, around 0.86000, because we might get another bullish divergence . Below that 0.80000 is the next level to watch.
On the monthly chart it is easier to see why I chose the red rectangles as important support levels
Note that at all the support areas we find important fib levels. I'm sure there are even more fib levels, I chose to draw only the most important. My plan is to add using the daily and the 4H chart and build up a position. The first level where I am going to consider wether to continue with my bearish bias or not is at the last swing low, around 0.86000, because we might get another bullish divergence . Below that 0.80000 is the next level to watch.
