AUD/USD drives lower toward the wedge base of 0.6250
DXY (USD Index) - buyers have returned and are driving the index higher. The weekly chart highlights a projected resistance level of 107.64. This is the completion of the AB leg in a Bat formation.
The four-hour chart highlights the breakout of a flag formation. The measured move target is located at 107.62. Reverse trend line support is located at 106.05. The bias is bullish.
AUD/USD- mixed and volatile price action has formed a bullish Ending Wedge pattern. Trend line support is located at 0.6248. On a break of 0.6391, the trend of lower highs, and the measured move target is 0.6501.
Conclusion: although the USD index highlights scope for strong buying pressure, with stock indices close to medium-term support levels, there is scope for risk on sentiment to buoy the Australian Dollar. The value trade would be to buy dips close to the trendline support at 0.6248. Time frame analysis offers no clear indication of a change of trend yet. An update will be sent when a signal is posted.
Resistance: 0.6391 (lower highs), 0.6435 (bespoke), 0.6501 (measured move)
Support: 0.6270 (swing low), 0.6248 (lower lows), 0.6170 (multi-year low)
The four-hour chart highlights the breakout of a flag formation. The measured move target is located at 107.62. Reverse trend line support is located at 106.05. The bias is bullish.
AUD/USD- mixed and volatile price action has formed a bullish Ending Wedge pattern. Trend line support is located at 0.6248. On a break of 0.6391, the trend of lower highs, and the measured move target is 0.6501.
Conclusion: although the USD index highlights scope for strong buying pressure, with stock indices close to medium-term support levels, there is scope for risk on sentiment to buoy the Australian Dollar. The value trade would be to buy dips close to the trendline support at 0.6248. Time frame analysis offers no clear indication of a change of trend yet. An update will be sent when a signal is posted.
Resistance: 0.6391 (lower highs), 0.6435 (bespoke), 0.6501 (measured move)
Support: 0.6270 (swing low), 0.6248 (lower lows), 0.6170 (multi-year low)