We have a very nice 2h AUDUSD chart ready for the next week. 0.7243 is a key and 0.7010 is a key . In addition there is a very nice diagonal support (red ) which was broken recently. This is an overall view of the chart. Now let’s go in depth and build our setup.
There is a very nice pattern which is almost completed. The completion level is 0.886 fibs of XA leg @0.7091 which is a nice as well if we look left. The red at this level is our PRZ (Potential Reversal Zone) where our buy limit order will be placed and stops will go about 15-20 pips below X. The best entry zone will be between 0.7110 and 0.7091. Our first target will be 0.382 Fibonacci of AD leg @0.7156. If we look this level carefully this level is a neckline of a , left top is A point and the right top is B point; so this will be our potential target 1. The second target is somewhere in 0.618 Fibonacci of AD leg 0.7196 and resist level 0.7156. Now comes a very interesting setup, where we are going to go short. The current setup is called 2618; which means the price has broken a neckline of , then it reversed and hit 0.618 fibs level which is a signal for bears to wake up. So we will do, our sell limit order will be placed at this reversal zone and stops will go above the key 0.7243. Our first target will be 0.7091 and the second target will be the key 0.7010.
For additional confidence look at , the price is at the OS (oversold) level, if we look left we see that this level acts like a support. Besides there was a divergence for pattern.
In conclusion, this is our technical analyses for AUDUSD . Good luck and let’s see what the market does.