Weekly gain/loss: -1.33%
Weekly closing price: 0.7507
The AUD suffered a nasty decline amidst trading last week, chopping 107 pips off its value. This has, as you can see on the weekly timeframe, positioned weekly price around the weekly channel support extended from the low 0.6827. What’s interesting about this line is that it merges closely with a weekly 50.0% value at 0.7475 taken from the high 0.8125, and a nice-looking weekly AB=CD (see black arrows) 161.8% Fib ext. point situated at 0.7496.
A closer look at price action on the daily timeframe reveals that the unit is also seen trading around a daily support level at 0.7505. This is not a level to overlook as it boasts an incredibly strong history. The other key point to note here is the daily inverted pin bar formed during Friday’s trading. To most candlestick traders this is considered a bullish signal.
A brief look at recent dealings on the H4 timeframe shows that the H4 candles bottomed ahead of the 0.75 handle on Friday. A modest run to the upside was seen after the greenback came under pressure amid less-than-stellar US average hourly earnings, but failed to preserve gains past highs of 0.7533 and dipped to a low of 0.7501 into the close, ending the day unchanged.
Direction:
• Long: The 0.75 handle is considered a strong buy zone given the higher-timeframe confluence surrounding the line. In order to avoid any whipsaw that may be seen through 0.75, and considering that there is likely higher-timeframe players involved here, a larger-than-usual stop may be required. Beyond the 0.7457 low seen back on the 06/06/17 (H4 timeframe) could be an option for stop-loss placement.
• Short: It’d be very risky to short into current structure, despite the downtrend in play right now!
Data points to consider: No high-impacting events on the docket today.
Weekly closing price: 0.7507
The AUD suffered a nasty decline amidst trading last week, chopping 107 pips off its value. This has, as you can see on the weekly timeframe, positioned weekly price around the weekly channel support extended from the low 0.6827. What’s interesting about this line is that it merges closely with a weekly 50.0% value at 0.7475 taken from the high 0.8125, and a nice-looking weekly AB=CD (see black arrows) 161.8% Fib ext. point situated at 0.7496.
A closer look at price action on the daily timeframe reveals that the unit is also seen trading around a daily support level at 0.7505. This is not a level to overlook as it boasts an incredibly strong history. The other key point to note here is the daily inverted pin bar formed during Friday’s trading. To most candlestick traders this is considered a bullish signal.
A brief look at recent dealings on the H4 timeframe shows that the H4 candles bottomed ahead of the 0.75 handle on Friday. A modest run to the upside was seen after the greenback came under pressure amid less-than-stellar US average hourly earnings, but failed to preserve gains past highs of 0.7533 and dipped to a low of 0.7501 into the close, ending the day unchanged.
Direction:
• Long: The 0.75 handle is considered a strong buy zone given the higher-timeframe confluence surrounding the line. In order to avoid any whipsaw that may be seen through 0.75, and considering that there is likely higher-timeframe players involved here, a larger-than-usual stop may be required. Beyond the 0.7457 low seen back on the 06/06/17 (H4 timeframe) could be an option for stop-loss placement.
• Short: It’d be very risky to short into current structure, despite the downtrend in play right now!
Data points to consider: No high-impacting events on the docket today.
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