The AUD/USD pair fell for some of the session on Monday, but managed a bounce to form a doji. The pair has bounced at the 50% Fibonacci level, and it looks as if the buyers are starting to reenter the market. The pair was also at the bottom of a down trending channel, so it looks as if we are going to have a bounce, but the trend is still weak.
In order to go long, we need to see the top of the Monday session candle broken, but we would only consider it a short-term trade at this point. The 200 day EMA is well above, and the pair looks vulnerable at the moment. In order to go long for a longer-term trade, we need to see the pair close above the top of the channel. Selling is difficult as there are many different minor support levels below.
Written by FX Empire