AUDUSD – New Trading Opportunities
Australian Dollar/U.S. Dollar FX:AUDUSD
The market is in a bearish trend . The price is at the resistance zone formed by the downtrend line and 0.71000 resistance level . The price action in this zone will be able to give us new trading opportunities based on the daily and lower timeframes and give insight for further market movements.
We have to take into consideration two possible variants. If the price breaks the resistance zone , it will confirm a trend reversal. The breakout can be used for opening long positions using the daily timeframe . MACD histogram supports this direction.
The alternative variant is based on a price reversal from the resistance zone . MACD lines support a possible downward movement. If the price drops below the local support at 0.70800 level it will give sell signals based on the daily and hourly timeframes.
DMI confirms range market conditions. ADX line moves sideways below the signal level. It means that we should not expect strong and stable price movements. Now we have to watch for the market and wait for clear signals for trading.
Source: TW DLavrov