AUD/USD reaches medium term support
The only recently discovered medium term channel pattern has done his part in supporting the Aussie against the US Dollar. However, it has occurred differently than expected.
The rate was not supported by the combined support of the weekly PP at 0.7901 and the 200-hour SMA at 0.7895 mark. Instead the pair was supported by a monthly level of support at the 0.7880 mark together with the lower trend line of the mentioned channel up patter.
The pair is about to face the resistance of the 55 and 100-hour SMA. Only if that is passed, a continuation of the surge is to be expected.
The rate was not supported by the combined support of the weekly PP at 0.7901 and the 200-hour SMA at 0.7895 mark. Instead the pair was supported by a monthly level of support at the 0.7880 mark together with the lower trend line of the mentioned channel up patter.
The pair is about to face the resistance of the 55 and 100-hour SMA. Only if that is passed, a continuation of the surge is to be expected.
Comment:
On Thursday it was clear that the rebound against the most dominant pattern will occur. However, it was unclear whether the pair will break the cluster of resistance above it. On Friday it could be observed that the resistance levels were broken.
Due to that reason, from a simple technical analysis perspective, it can be forecasted that the currency exchange rate will jump to the upper trend line of the previously active medium term pattern near the 0.7940 mark.
However, one should be careful and look for a short term patterns. Most likely a short term ascending pattern can be mapped. Meanwhile, take into account that Janet Yellen’s speech at 16:00 GMT will influence the US Dollar.
Due to that reason, from a simple technical analysis perspective, it can be forecasted that the currency exchange rate will jump to the upper trend line of the previously active medium term pattern near the 0.7940 mark.
However, one should be careful and look for a short term patterns. Most likely a short term ascending pattern can be mapped. Meanwhile, take into account that Janet Yellen’s speech at 16:00 GMT will influence the US Dollar.
While looking for the reasons for this move, the junior long term channel was adjusted, and the situation became clear. To observe the patterns zoom out the online chart, and you will have a clear understanding, what was occurring on the AUD/USD rate.
In regards to the near term future, it still is to be seen, whether the pair manages to break through the resistances of the weekly PP and the various hourly SMAs.