AUDUSD
At the beginning of the week, AUDUSD encountered a significant resistance level at 78.6, which caused the price to rise to 23.6. Following this incline, we decided to take a short sell position on this pair to observe whether the level of support would be retested. The retest of this level could indicate the validity of our upward trendline. At present, the momentum is favoring the bears, and the market is showing a bearish trend. However, if this level of support holds, it could indicate a shift in market sentiment, and we could witness an upward trend in the near future.
Alternative Scenario:
If the market price fails to exceed the gap between the 61.8% and 50% Fibonacci retracement levels, it could suggest that the ongoing downtrend may persist. This implies that the current bearish market sentiment may continue, and investors may be more inclined to sell rather than buy. It could be a crucial level to watch out for as it may determine the future direction of the market.