Last week after the pair reached and retested the M_PP level, we were expecting a strong move downwards to break the support at the bottom of the range where the pair is trading for the last few weeks. What we got was a very strong bearish move for more than 90 pips but then it again found support and was unable to break it at the bottom of the horizontal channel where the pair is ranging. Based on the current price action on the daily/4 hours chart, we will be looking again for a retest of the M_PP at 0.74673 as we think the bulls will be enough strong to send the price up there but then the bears will kick in and drag the price lower and even try to break the support at the bottom of the channel around 0.7340. In case we have a retest of the M_PP and some price action evidence that the price will reverse, we will try to take a short position.
Comment
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The pair continues on the beginning of this week to move very slowly in the upside direction, nearing the M_PP level which may serve as support. No trade was entered until now because the price still didn't reach the expected level in order to convince us to take a short position.
Comment
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AUDUSD pair still is trading in the range, giving some signs of head and shoulders pattern on the 4 hours chart so this may give the price more bearish mood, however this is not in our expectations so we will be taking no positions this week.