Watch out! Fake out coming for the AUDUSD
The aussie dollar continued to trader in a tight range, ending the week bullish but uncertain in the direction it wants to go. At this point, this pair looks ready for another trip to the downside to liquidate premature longs placed at around the 0.73 levels.
BEAR CASE
If the bears take control, it should be a short-lived trip down to 0.724 or the 0.715 levels but it should quickly rebound strongly to break the downtrend
BULL CASE
The scenario that we have been hypothesising for several weeks now will need to be fulfilled eventually as the shorts pile on and there is no-one left to short the AUDUSD. We expect a pin bar reversal pattern to form for the August monthly close and if a engulfing red candle forms. we expect a strong green candle to form in September.
BEAR CASE
If the bears take control, it should be a short-lived trip down to 0.724 or the 0.715 levels but it should quickly rebound strongly to break the downtrend
BULL CASE
The scenario that we have been hypothesising for several weeks now will need to be fulfilled eventually as the shorts pile on and there is no-one left to short the AUDUSD. We expect a pin bar reversal pattern to form for the August monthly close and if a engulfing red candle forms. we expect a strong green candle to form in September.