After retesting the descending May trendline on Friday, the pair closed near the 0.618 levels (0.78351-0.68270) standing at 0.72121, leaving some room for speculations over the next two weeks.
Possible scenarios:
1- A continuation of the bearish May movement with 0.7110 as first target with a possible break leading to further decline towards the Grand monthly trendline (somewhere around the 0.7 mark)
2- A corrective break above the 0.7245 levels would take us to the Grey area. Short term traders would benefit from a long entry on the break with 0.73-0.733 as targets. Mind you, 2016 descending line from 0.7835 highs would be at test and it won't be safe to enter long term trades. A break above the trendline (0.733 levels) would signal an upward movement towards 0.38 fibo levels at 0.745. Failure to break above the 0.733 levels would force a retest of the broken trendline and a possible decline towards 0.7 levels.
I'm bearish on AUDUSD until RBA's next meeting or a break above 0.733, whichever happens first.
Possible scenarios:
1- A continuation of the bearish May movement with 0.7110 as first target with a possible break leading to further decline towards the Grand monthly trendline (somewhere around the 0.7 mark)
2- A corrective break above the 0.7245 levels would take us to the Grey area. Short term traders would benefit from a long entry on the break with 0.73-0.733 as targets. Mind you, 2016 descending line from 0.7835 highs would be at test and it won't be safe to enter long term trades. A break above the trendline (0.733 levels) would signal an upward movement towards 0.38 fibo levels at 0.745. Failure to break above the 0.733 levels would force a retest of the broken trendline and a possible decline towards 0.7 levels.
I'm bearish on AUDUSD until RBA's next meeting or a break above 0.733, whichever happens first.