AUDUSD is still in longer term downtrend.
In the last short term chart we were successful in taking short which didn't reach the 1st target level but came close.
However, since then, it has bounced strongly in abc zigzag in what appears to be wave 4 retracement. The today's gap up open could set the scene for excellent short entry with tight stoploss.
Downside target could be at least retest of the last low or lower still with:
1. Price back into resistance zone and in the vicinity of iv of one lower degree typical for wave 4.
2. RSI appears to be setting up equal or higher high and price lower high, hence hidden negative divergence.
3. The 1st Target level still remains to be 0.7450 area
4. 2nd Target 0.7250 -0.7150
As always, do your own analysis for your trade requirement. Select to follow me and the chart for notification of future updates. If you like the analysis then please indicate this by thumbs up, constructive comments and sharing with others. If you have an alternative idea then please share for all to learn from.
Thank you for taking the time to read my analysis.
DanV
danv-charting.com
In the last short term chart we were successful in taking short which didn't reach the 1st target level but came close.
However, since then, it has bounced strongly in abc zigzag in what appears to be wave 4 retracement. The today's gap up open could set the scene for excellent short entry with tight stoploss.
Downside target could be at least retest of the last low or lower still with:
1. Price back into resistance zone and in the vicinity of iv of one lower degree typical for wave 4.
2. RSI appears to be setting up equal or higher high and price lower high, hence hidden negative divergence.
3. The 1st Target level still remains to be 0.7450 area
4. 2nd Target 0.7250 -0.7150
As always, do your own analysis for your trade requirement. Select to follow me and the chart for notification of future updates. If you like the analysis then please indicate this by thumbs up, constructive comments and sharing with others. If you have an alternative idea then please share for all to learn from.
Thank you for taking the time to read my analysis.
DanV
danv-charting.com
