- The analysis for USD I show in the S&P500 topic:
So if I put my faith in of USD. AUDUSD move will be .
The most my concern is AUDUSD is in oversell state, so if market has any disadvantage information for USD, it would cause strong BUY force for AUDUSD , and the result is AUDUSD would be trade above key level I show on the chart:0.895
With lot of economic data regarding to USD next week, and we don't know what will happen, It's very dangerous to hit a sell order in the being time.
Last week, we saw AUDUSD pierced the key resistance level: 0.895 before moving back below 0.895 level.
Once this key is pierced, there is no reason it happens once again.
AUDUSD had two weeks consolidated in the range between 0.895 and 0.882 : 130 pips. To break the strong support 0.882, Market needs to provide catalyst enough strong, but I think with economic data is released this week, A/U cannot break this key level soon.
AUDUSD has two choices to move next week:
- 1 sideway in the range : 0.882 and 0.895
- 2 move to new range I show on the chart: 0.895 and 0.9060 : 110 pips
0.9060 is a strong resistance , this is 38.2% Fib retracement : the level of retracement which A/U respects.
You have also two choices to trade AUDUSD base on your view about USD:
- If you think USD raise up : SELL at current price ,stop loss at 0.9060, take profit at 0.885 I show on the chart.
- If you think USD fall down: BUY at current price, stop loss at 0.882, take profit at 0.9050.
Most people believe in of USD,so it's hard for me to trade opposite the view of crowd.
I choose the first choice, SELL AUDUSD to 0.885.