AUD/USD:- A New Low Has Formed! What To Expect Next?
AUD/USD:- As suggested, we have now fulfilled the monthly key level of 0.7400 that has previously acted as a crucial barrier of support, back in May and June of last year. Here we are 12 months later and the scenario looks slightly different. With a lot of pressure form higher timeframes, we do expect the pair to continue its overall bearish momentum. However, having formed a new low in the market yesterday, we need to prepare ourselves for the possibility of a slight pullback before we continue the bearish move.
Scenario A, is a retest of the upper level of resistance 0.7450 and maybe higher to 0.7500. This would help continue the wave pattern structure and create a new Lower Swing High, before looking to sell off.
Scenario B, would be the price remains heavily shorted and the follow through straight to 0.7300 occurs this week. I am always in favor of getting into the market at the highest points possible and therefore will be monitoring any slight pullbacks before finding another entry.