Weekly closing price: 0.7595
Weekly opening price: 0.7589
Weekly view: The past week saw the commodity-linked currency bounce from the top edge of a weekly at 0.7438-0.7315 back up to a weekly resistance line at 0.7604. Given this level’s history, our team favors a bounce to the downside this week.
Daily view: Thanks to a strong bout of buying seen from a daily coming in at 0.7517-0.7451 (merges beautifully with a daily channel support line taken from the low 0.7148 and is positioned on top of the above said weekly ), price was able to cross swords with the aforementioned weekly resistance line.
H4 view: Looking at Friday’s action on the H4 chart, the Aussie aggressively launched itself north following a weak US GDP print, consequently forcing price to collide with a H4 supply area at 0.7606-0.7589, which for the time being is holding firm. Given that this area merges with both a psychological level at 0.76 and the aforementioned weekly resistance line, it’s no surprise to see this barrier currently suppressing the buyers.
Direction for the week: is likely to be south. According to our analysis, the next downside target on the higher timeframes is the aforementioned daily channel support line.
Direction for today: is also likely to be south, since there’s very little support in the market between the current H4 and the next area of H4 support coming in at 0.7544-0.7521 (located just above the aforementioned daily ).
Our suggestions: In view of all three timeframes, our team has entered short at 0.7589, with a stop placed above the current H4 supply at 0.7611. There’s only one target we’re interested in today and that’s the above said H4 support area!