Trade of the week AUDUSD

Trade of the week – AUDUSD scope for further downside

 

AUDUSD is trading in a heavy long-term downtrend since the 2011 reversal from a 1.0800 high which is visible on a monthly chart. Recently it broke below a strong 0.6900 level of resistance but since touching the 0.6650 low it has bounced back but has faced medium-term downside support recently. Since we will have RBA rate decision this week, trend could continue if RBA will be dovish and continue to call for a rate cut.

On a daily chart, we can see that the pair is testing the 0.6900-0.6950 zone which is a strong confluence of downside support. Based on this you can place a short trade entry with a stop loss above the 0.6950 level targeting 0.6800 level and even trailing the profit further downside in case of a break below this level. ARMAT trading system is indicating a potential 200 pips of profit.

 

We have used the combination of the top-down trading analysis to get these key levels explained in the charts.

Happy trading! (click on the chart to enlarge it)

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