The AUDUSD got caught up in the recent frenzy of volatility in the August markets – bad news from China also was a catalyst for major AUD weakness. We’ve seen price scream through a major support level and crashing into the 70c area.
Since then, we’ve had a bit of bouncing around as price attempts to stabilize, nothing really reliable to trade.
Instead I am waiting for price to retrace back up and test a hot spot for bearish price action. The hot spot marked on the chart is the old major support level, when tested, if we see it acts as new resistance – this will be a strong sign the selling is going to continue and a good price area to enter as a bear.
This area also will co-inside with the mean value, which adds further value to the trade setup. Hopefully next week we will see a nice strong sell signal here.
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