AUD/USD Reacting to 2017 Resistance. Will Sellers Remain in Control?
Looking at AUDUSD – At first glance, from a monthly perspective we can see that sellers are way in control as we see price continue to form lower highs.We see price struggle to break the 0.800 level. A level that hasn’t been breached since July 2017.
Is price trying to rebound from 20 year lows at the 0.5500 levels?
From closer examination, we can see buyers try to rally price higher on a weekly time frame perspective. But from the looks of it it, sellers look to gain back control as weekly structure was broken
Based on overall sentiment from the monthly time frame, we can expect sellers to bring price back into the 0.700 levels to retest Monthly Structure/Support.
On to the Daily. If we look like we can see price has stalled at the 0.73250 levels which price has acted as a resistance before in Sept-Oct 2020. Just as we saw on the weekly tf, Weekly structure lines up with prominent Daily Resistance. If we draw a fib we get a nice looking setup forming for a 61.8 retracement into lower levels.
Dropping down lower to the H4 tf, we can start to see more intraday trading opportunities. If you’re an aggressive trader, you may want to counter-trend trade into the daily levels until the trend trade opportunity presents itself. We can draw our trendline and see that it was broken and price looks as if it’s coming back to retest it. We can draw our fib and see that our 38.2 fib retracement lines up with a trend line retest.
H1 tf shows us the same thing.