AUDUSD closed below 0.78 after reaching a high of 0.7937 last week. Last week’s candle movements were due to uncertainty in the Dollar where we saw prices soared and tumbled last week. With no major data release from Australia this week, focus would lie on the Dollar where we may see speculations in the market driving prices in either direction. With the release of U.S Non-Farm Employment Change data this Friday, volatility of the pair is expected to be high.
Paying attention to the daily chart, candles now draw near the support price at 0.7710 where we may observe a possible inverse head and shoulders formation. For traders who are aggressively looking to engage in a longing entry, it is possible to set a buy limit at 0.7700, just below the support price with a tight stop loss to hold on for the week. However, given the various data release coming from the U.S this week, it is strongly advised to shift their stop loss as soon as possible to entry price should their buy limit at 0.7700 gets activated.
Focusing on the H4 chart, the nearest supports lie at 0.7710 and 0.7650. After such a strong bearish movement towards 0.7700 observed last week, a retracement or a reversal is expected. The region highlighted in green is a possible price region where traders can engage in a longing position for the week ahead should a confirmation of a trend reversal is observed.
|Bullish for the week should the pair hold above 0.7710||0.7571||0.7650||0.7710||0.7800||0.7870||0.7900|