In previous analysis of AUDUSD (which was published April 1) I indicated 0.7850 level as a target of current upward movement. The price has moved up since mid-January 2016 and reached important resistance. At that level resistance coincides with the upper limit of bearish regression channel. In current week the price reached below this level at 0.7833 and rebounded. Declines have been lasting for 3 days, but be carreful -another attempt of breaking this key level didn’t occur yet. However there is every indication that it will be failed. Two elements confirms it:
- strong resistance strengthened by the upper limit of bearish regression channel (blue lines at time-frame W1)
- for last 4 months there wasn’t any clear correction (previous corrections were shallower than Fibonacci 38.2%)
The only successful scenario for bulls is consolidation below that level or bigger correction finished with rebound. However in this moment main scenario for AUDUSD is mid-trend reversal. Which means the price will return to its main trend from TF weekly.
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Time-frame D1
Time-frame W1
