Short overview:
- The AUD/USD pair is still moving between the levels of 0.7459 and 0.5215. So the weekly pivot point will be set at the level of 0.7364. Moreover, the weekly point has already formed a minor resistance at this area because the strong resistance has already been set at 0.7459. Therefore, sell at the level of 0.7459/0.7364 with the first target at the 0.7292 price, then it will call for a downtrend in order to continue its bullish movement towards 0.7215 in order to represent the double top. Nevertheless, the stop loss should be placed at the level of 1.6550. If the trend fails to close above the level of 0.7459, it will be a good sign to buy at this level in the short term with targets at 0.7495. Then it is going to continue towards the 0.7534 price.
Outlook in the long term:
- On the H4 and daily charts, we expect that the trend is going to call for the bearish market at the level of 0.7534 and 0.7459 (the monthly pivot point). As a result, sell at the price of 0.7534/.7459 with the first target of 0.7215, it might resume to 0.7160 with a view to form a new double bottom. On the other hand, your stop loss should be placed above the 0.7534 level, hence it will be good to set it at the price of 0.7568 this week.
