Hello!
So it's time to consider the extremely interesting and curious AUD/USD pair. This currency pair is loved by many traders.
The AUD/USD quote can both grow rapidly and fall no less significantly, giving a good opportunity for market participants to earn on the exchange rate change. However, the second side of the coin implies quite significant losses, if the analysis and forecast were incorrect. Well, let's start debriefing on "Aussie" and for a start let's turn to the weekly timeframe.
Weekly
After the last weekly candle, there was a minimum of doubt in the further downward scenario, which, is confirmed by the course of the current weekly trading. However, there are two significant and extremely important technical nuances. These are the Kijun (0.6877) and Tenkan (0.6894) lines of the Ichimoku indicator.
It seems that the further price dynamics of the Australian dollar will largely depend on the true breakdown of these lines (levels). Judging by the weekly timeframe, it is not yet possible to draw unambiguous conclusions. Now, let's move to smaller timeframes.
Daily
Here we see that after a strong decline on January 7, the pair gained support around 0.6850. Let me remind you that this is a very strong technical level, as we can see again.
In my opinion, a slight correction is now possible, after which the pair will turn in the south direction. I will indicate the purpose of the proposed rollback, after which it is time to consider opening short positions on AUD/USD.
So, the nearest option for opening short positions will be the price zone of 0.6900-0.6920. If the rate rises above 0.6820, I am not sure if the downward scenario will remain relevant.
If the downward trend continues, we are waiting for the pair in the area of 0.6830, where the upper border of the daily cloud of the Ichimoku indicator passes.
H4
So, to sum up, and decide on trading ideas, let's look at the H4 chart, where it is clear that the corrective levels of 0.6788. and 0.6800 should be considered for opening short positions on AUD/USD.
So far, this is all for the moment. Good luck and all the best!
