- AUD / USD has reached a supply zone and unless it can break the structure in the near term, the focus is on the downside.
- From a top-down analysis, the different structures are identified.
Ahead of Chinese data to start the week, the AUD / USD has reached a higher level in a supply area, but unless it can come out higher, the focus is on the downside.
On the 4 hour chart we can see a number of key features which include an uptrend line target, a slight confluence of the 61.8% Fibonacci retracement as well as the earlier highs that make up the target area. :
From a top-down analysis, the supply area is represented on the monthly chart as follows:
On a daily scan, there are two possible scenarios identified as follows: