Hello Traders,
Here is the Top-Down Analysis of AUDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price faced rejection at monthly resistance and has dropped for correction which we expect to be near 0.382 Fib level on last bullish impulse. We saw W formation and expected price to drop till the neck which price did and completed the formation. Neck of W is on way to 0.382 level.
W > Price dropped till 0.618 Fib level on weekly bullish impulse for correction. We saw M formation and price moved up to test the neck and complete formation. Price has in fact moved beyond the neck.
D > Price has broken resistance created by the neck and is now approaching weekly supply zone/ resistance level, this level can test and pause the price but we do not see loss of momentum on daily candle as of now.
As per COT AUD saw addition of major Long and Short positions, increasing net positions. AXY gained strength during the said week, it improved its position last week.
4H> Price created double top at neck of W formation, dropped and then broke through the level. For Long Term we continue to have bearish trend hence we will monitor price action near supply zone for reversal.
Recommendation > Bearish target is for swing and position traders only. For all intraday traders focus only towards Target 1. As per Daily chart we see bullish trend, however as per Weekly chart price is making LH and LL, our bearish target will get invalidated if price breaks weekly LH at supply zone.
Pair Correlation > AUDUSD has positive correlation with AUDJPY, NZDUSD, AUDCAD, AUDCHF, NZDJPY and EURUSD and negative correlation with USDCAD, EURAUD and GBPAUD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section you can share your view and ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of AUDUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Price faced rejection at monthly resistance and has dropped for correction which we expect to be near 0.382 Fib level on last bullish impulse. We saw W formation and expected price to drop till the neck which price did and completed the formation. Neck of W is on way to 0.382 level.
W > Price dropped till 0.618 Fib level on weekly bullish impulse for correction. We saw M formation and price moved up to test the neck and complete formation. Price has in fact moved beyond the neck.
D > Price has broken resistance created by the neck and is now approaching weekly supply zone/ resistance level, this level can test and pause the price but we do not see loss of momentum on daily candle as of now.
As per COT AUD saw addition of major Long and Short positions, increasing net positions. AXY gained strength during the said week, it improved its position last week.
4H> Price created double top at neck of W formation, dropped and then broke through the level. For Long Term we continue to have bearish trend hence we will monitor price action near supply zone for reversal.
Recommendation > Bearish target is for swing and position traders only. For all intraday traders focus only towards Target 1. As per Daily chart we see bullish trend, however as per Weekly chart price is making LH and LL, our bearish target will get invalidated if price breaks weekly LH at supply zone.
Pair Correlation > AUDUSD has positive correlation with AUDJPY, NZDUSD, AUDCAD, AUDCHF, NZDJPY and EURUSD and negative correlation with USDCAD, EURAUD and GBPAUD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section you can share your view and ask questions.
Thank You
AP17FX
