After the crash of 2008, Audusd started a rally that lasted for more than two years. Then the market moved sideways, in a wide range for another two years. A year ago, a downtrend started. The oscillator shows a hidden divergence, which points out that the rally at the beginning of the year (announced by a huge bullish divergence) is just a correction in this bigger downtrend.
On the monthly chart it is easier to see why I chose the red rectangles as important support levels
Note that at all the support areas we find important fib levels. I'm sure there are even more fib levels, I chose to draw only the most important. My plan is to add using the daily and the 4H chart and build up a position. The first level where I am going to consider wether to continue with my bearish bias or not is at the last swing low, around 0.86000, because we might get another bullish divergence. Below that 0.80000 is the next level to watch.
On the monthly chart it is easier to see why I chose the red rectangles as important support levels
Note that at all the support areas we find important fib levels. I'm sure there are even more fib levels, I chose to draw only the most important. My plan is to add using the daily and the 4H chart and build up a position. The first level where I am going to consider wether to continue with my bearish bias or not is at the last swing low, around 0.86000, because we might get another bullish divergence. Below that 0.80000 is the next level to watch.
