AUDUSD long to short: AU bounce to continue

5 Nov 2018

AU had a strong push on Friday, thanks go general Dollar weakness.
I think the last leg up should have finished sooner except for the below.

There was some mixed news regarding a Trump-Xi deal.
First it was leaked that Trump actually asked his cabinet to draft an agreement.
Then the White House downplayed that scenario, as if not much had changed.

But in general it looks quite bullish still, and I do think a wave 5 is imminent.
I see three possible support zones where I will be watching the price action for sings of reversal.
The middle green zone (with darker wave 4-5) is in my opinion the most likely scenario.
If the lower green zone is reached, the uptrend is at risk, even if it does bounce a bit.

Background:
I am a longer term AUD bear, anticipating a serious drop yet to come

Since then I have been looking for shorting opportunities such as this recent plan

Then some solid pips of profit came from two way action per this plan

My last plan was to go long again, which worked out very well

Which brings me to my current plan to look for a long scalp, and then short it hard

5 Nov 2018

Nota

AU pushed up into the resistance zone immediately above. But low volume due to it being a Monday, and the upcoming elections in US have put a damper of money flows. But good to see the movement following the expected path

6 Nov 2018

Nota

AU looks to have successfully flipped a resistance zone into support

7 Nov 2018

Nota

After some crazy movement during US elections, AU is now approaching what I thought was the most likely target Expecting a little pullback, but given the election results (not good for Dollar) I think it will get to the next zone above.