In our previous analysis posted on 20th August - we anticipated strong bullish sentiments in shape of reversal from our 50% fibb retracement level. Australian Dollar made lowest lows in daily time frame after falling from 0.7874 towards 0.71000; this move from weekly perspective - completed 50% of the bearish correction and entered the highly oversold conditions in daily and four hourly time frame. The relative strength index on interday timeframes had to correct itself by taking an exit from below 30 and currently striving at 44 to generate more bullish momentum. AUDUSD has also entered our bearish channel again by breaking above 0.7176 and establishing a hawkish structure between 50% and 61.8% fibb retracement level. In weekly time frame a sharp reversal can be witnessed from 70 in relative strength index - depicting a denial of tasting oversold conditions on intraday chart and 50% fibb became a strong factor for the bullish move. 

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

As investors looked past dismal Australian macro data, a modest US dollar weakness assisted the AUD/USD pair to gain some positive traction on Friday and recover a part of the overnight losses. The underlying bullish sentiment in the financial markets weighed on the safe-haven greenback and acted as a tailwind for the perceived riskier aussie. Apart from this, a softer tone around the US Treasury bond yields further undermined the greenback. Monitoring the current market move above 50% fibb and flirting above 0.72000 price action, we are expecting that the bullish correction of higher degree will be completed near 61.8% fibb retracement level i.e 0.74030. Exponential moving average 50 is situated near 0.73834, our upper trend line to the bearish channel at 0.74230 and the Senkou Span B of the ichimoku at 0.73961; the aforementioned can become strong reasons for bearish sentiments and initiate the continuation of major bearish trend towards 0.6970 i.e 38.2% fibb retracement level. For now we will stay bullish towards our major resistance areas near 0.74000 forwarded by observing the market movement and updating our viewers with further directions to AUDUSD.  

AUDUSD

Aug 27 2021

Take Profit +2.31%

Holding time 6d21hr

0.72580

Entry price

0.74260

Take profit price

1