I believe that this week opening for AUDUSD will start with further down move to the lower bound of descending channeling line which is about 0.78200.
What make me believe that?
1. DXY index look very bullish for me now after the number of surprising NFP and this should give dollars some more breath to bounce (in my view 5-10 days rebound).
2. Look at AUDUSD, if you check back the Fibonacci level from the past as below
a. The first draw of FIBO level from 0.804 to 0.794 (number 1 in the chart) the price make it way to south after touching 50% FIBO.
b. The second draw of FIBO level from 0.804 to 0.79140, the price also sunk after touching the 50% FIBO.
I do drawing FIBO for a. and b. with the same start point because I think it is the same wave. Currently we are in another wave which is start from 0.7980 level to 0.78900 so I think
c. The price will also retreat around 50% of FIBO level which is around 0.79355.
3. Look at the chart again, you will see down trend line draw from 0.804 and 0.799 and the price action when touching this line. It shows that it is possible for this line to be both resistance and support base on the current trend.
The Friday closed price is around 0.79300 which is very close to 2. and 3. above so I think on Monday the price will start go down after opening.
This trade give very tight stop at 0.79430 (just some number I write above 0.79355 in case of spike occur) and TP at 0.78200.
What make me believe that?
1. DXY index look very bullish for me now after the number of surprising NFP and this should give dollars some more breath to bounce (in my view 5-10 days rebound).
2. Look at AUDUSD, if you check back the Fibonacci level from the past as below
a. The first draw of FIBO level from 0.804 to 0.794 (number 1 in the chart) the price make it way to south after touching 50% FIBO.
b. The second draw of FIBO level from 0.804 to 0.79140, the price also sunk after touching the 50% FIBO.
I do drawing FIBO for a. and b. with the same start point because I think it is the same wave. Currently we are in another wave which is start from 0.7980 level to 0.78900 so I think
c. The price will also retreat around 50% of FIBO level which is around 0.79355.
3. Look at the chart again, you will see down trend line draw from 0.804 and 0.799 and the price action when touching this line. It shows that it is possible for this line to be both resistance and support base on the current trend.
The Friday closed price is around 0.79300 which is very close to 2. and 3. above so I think on Monday the price will start go down after opening.
This trade give very tight stop at 0.79430 (just some number I write above 0.79355 in case of spike occur) and TP at 0.78200.