AUDUSD:- Is A Correction Necessary Or Not?
AUDUSD: Whilst we let the dust settle over the weekend on the currency pairs we come back to this market after a strong bullish day across many of the majors on Friday. Aud moved the least in the number of pips and could be in for a catch up in terms of the recovery of the pair. From the chart, you can see how the currency pulled itself back to the monthly key level of 0.7400 in alignment with a smaller scale Fibonacci and although it may be a potential break out, retest, continuation there could be a larger move in play. We must let Monday play out to grasp a better understanding of the pair, however, my favoured scenario comes from a break back above 0.7400 and a deeper correction to occur firstly to 0.7500 and beyond to 0.75750. I often have a habit of calling trend reversal one move too soon and I will be eagerly anticipating a break of 0.7400 before considering any sort of long bias.
An alternative scenario, if the USD continues to find strength as we lead into a new month, There could be the break of the current supportive region of 0.73550. A strong closure below this level could indicate further bearish momentum to be had. Having already made a new Lower Low I will be cautious of how much further the pair can fall without any for of retracement. All eyes on the daily candlestick closure.