Our previous analysis was based on short term reversal trade - published on 8th June had achieved its target by completing its bullish retracement at EMA50 and as we suggested that the overall trend would be bearish as soon as the market fails to break our resistance 0.75800. Talking about the major trend; weekly time frame after a deep observation has provided us with a view that there is room for a deeper correction to be completed, while still in formation. 0.73300 will provide us with a more clear picture after being achieved by Aussie - if the higher degree of wave c had been completed or not. EMA200 is our concern in terms of providing a reversal from the major buy zone of ours, i.e 0.73300. 0.75800 was our previous breakout from the head and shoulder structure triggering the bearish mechanism to take over and ultimately this again, will be our focus to be provided with a breakout first in order to call for bullish wave continuation. 

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

The current market scenario is suggesting that the weekly trend will be more in control over the coming week to meet its major support at 0.73300. This will be the deciding point specially for our corrective approach towards the market at the moment. We will be buying AUDUSD from EMA200 under weekly time frame and letting the trade run for 5 wave bullish impulse of lower degree on daily time frame. 0.75600 will be our targeted destination to take an exit from most of our buy positions for as we said, the weekly trend will be in control. The bullish trend on weekly chart was initiated in March 2020 with its first major breakout above 0.70200, so placing our fibb levels from the highest high to the first breakout made in May 2020, suggests that we are already near 50% fibb level which is a good indication of taking buy reversal trades. In worst case scenarios would be extending the fibb level to its highest lows, market might end it correction of highest degree at 0.70700, but thats far away for now in terms of intraday trading. Focus on 0.73300 for executing buying entries while following our prescribed TP and SL. 

AUDUSD D1

Jul 17 2021