Medium term trend: Down
Significant Levels: 0.9 (Significant Round Number)
0.889 (Horizontal Resistance)
0.868 (Horizontal Support)
Still, AUDUSD is down and is continuing to go down. The price reached the previous low that formed in January 2014. This low is where the market starts to form an uptrend and now, the price is down and again retesting that level (0.868). The price action that will form here would be interesting. Currently, as of writing, the price is rejecting the Support, though not that strong. This indicates that the market still respects this and should respect this level. Why is that? It's because as mentioned, this Support is where the market started to form an uptrend before in January. What will happen here could be a turning point and could be a long term direction of this market.
As can be seen, the Downtrend/Descending Channel is so steep, meaning, the move is very strong that it just happened in a short period of time. As what I'm always mentioning, a strong move cannot be sustained for an extended period of time. There will always be a retracement somehow.
For now, we are considering to go Short and ride with the market, but a Support gets in the way, therefore no trade as of the moment. Long trade could be considered for now, only if you're an aggressive trader and want to take advantage of every move. The price will move back up a little bit, away from the Support because there are many target profits placed in there. But take note that every rally in the price would be a good opportunity to place our Short trade.