AUDUSD Forex cross-pair is in a clear weekly downtrend using supply and demand imbalances. AUDUSD Forex cross-pair forecast is bearish. Monthly and weekly timeframes are in a clear downtrend creating strong weekly supply imbalances like the last one located around 0.6995.
As you will see in the supply and demand technical video analysis, supply and demand core rules state that after a very strong bearish impulse, we should wait for a bigger retracement as the price is too cheap to sell. We can see on AUDUSD’s weekly timeframe that the price has been pausing for three weeks after the strong weekly bearish impulse that ended up creating a pretty strong weekly supply imbalance where shorts will be possible again. The weekly timeframe is stalling and showing signs of weakness. Shorts may be higher at the weekly supply level or if new strong supply imbalances are created.
Some counter-trend buy opportunities could be created if you are an intraday trader or scalping using other Forex trading strategies. As a swing trader, the trend is clearly down, so only shorts are possible are strong imbalances of supply. If you are not patient enough and start chasing trades, the market will blow up your account.
This is the kind of price action technical analysis you will learn in our online trading academy. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with a full or half-time job. You won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
You should not worry about fundamentals or earnings announcements unless you are doing very short-term trading and scalping.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.