AUDUSD first things first

I'm still looking for AUDUSD to test fair value 0.81 before this pair might be ready for a new trend on the daily time frame. However nothing moves in a straight line so we need to let the lower time frames play out structure of lesser degree first. We saw a nice bearish impulse after the Non-Farm Payroll report today and most importantly the 'Average Earnings'. We see AUDUSD currently correcting that bearish move and I like to sell the continuation lower.
First target zone will be the lower structure line. We have to let price action tell us what will be next because so far we saw many extensions higher and with 0.81 as likely target for the correction on the daily time frame a three wave structure lower might be it for the short term. If we however sell and see a bearish continuation we are already in the trade.
Updates will follow.

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Comment:

AUDUSD extended once more and we are still looking for 0.81.
For this month I see for several reasons 0.785 as maximum, we also have some Fibonacci confluence but that is not leading for me when calling this area as maximum for the month. What I Mean is that above this area I won't buy AUDUSD anymore for the rest of the month. We have RBA statement tomorrow and this might give us some volatility (or do nothing at all) and possible spike price towards 0.785 zone. Personally I see 0.81 once the market realizes that FED is not going to hike rates next FOMC meeting, so we have to wait a little longer. But that's all too soon to tell. Nevertheless our analyses kept us out of possible short trades that didn't work out. This is because we focus on probability based on structure, market dynamic and fundamental outlook. Also keep in mind 'the trend is your friend' so use pullbacks in your advantage until proven otherwise.

Updates will follow.

Comment:

AUDUSD is amazing, keep looking for consolidations and let's see whether we reach the high for this month at 0.785 as maximum.