In this chart we can see that the AUDUSD
is in a key area sitting directly below weekly resistance (check the weekly chart for more clarity on this). Judging by the move made on the DXY
last week, we can see that the weekly candle on the DXY
closed level in line with a support area
. Because of this, I believe that we may see a temporary relief in the sell off of the USD and therefore a drop in other pairs - like the AUDUSD
. This short is only for the near term as long term I am personally still bullish
on this pair.
As the weekly candle closed below the weekly resistance level
on this chart, I would like to see a short position take us to 0.65 as a first target, and 0.64 as an extended target. Buying volume
has been decreasing over the last week on this pair with higher spikes in selling volume
. My overall opinion is the likelihood of this pair seeing a short term relief to its recent incredible bull run is high. I will be looking for shorts around the 0.665-0.67 area with targets around the 0.65/0.64 ranges.