H1 bullish flag faces strong opposition
AUD/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Overwhelmed by the effects of the coronavirus pandemic, demand at 0.6358/0.6839 and 0.6094/0.5866 recently yielded, scoring seventeen-year lows at 0.5506.
Recent movement, therefore, exposed the possibility of another layer of demand at 0.5219/0.5426 entering the fray. This is also in line with the primary downtrend, lower since 2011.
Daily timeframe:
Partially altered from previous analysis -
Price action whipsawed through supply-turned demand at 0.5664/0.5798 and tested a well-grounded support level at 0.5563 in recent sessions. Shaped in the form of a near-full-bodied bullish candle, AUD/USD upside unfolded yesterday, closing in on a demand-turned supply base at 0.5926/0.6062, which contained downside (as demand) in October 2008.
With reference to the RSI indicator, we trade from unparalleled oversold levels right now, with the value seen bottoming off 10.00, currently attempting to nudge above 30.00.
H4 timeframe:
Partially altered from previous analysis -
Focus on the H4 timeframe remains on newly formed supplies. The latest area to grace the charts falls in around 0.6036/0.5978, which made an entrance on Friday, forcing moves to lows of 0.5746 into the close.
With the H4 candles consolidating gains around the lower boundary of the aforementioned supply zone, traders are urged to pencil in supply at 0.6147/0.6078, in the event antipodeans attempt to regain further upside today.
H1 timeframe:
Global equities rallied strongly Tuesday, sparking a risk-on environment, leading to the Australian dollar gaining against the greenback and conquering the 0.59 base, while shortly after retesting the latter as support. Aside from a fleeting move to lows at 0.5864 mid-way through London, 0.59 held strongly as support. Upside from this point faces opposition from the daily demand-turned supply base at 0.5926/0.6062 and H4 supply netted at 0.6036/0.5978.
Despite the obvious resistance, some analysts believe recent H1 action resembles a bullish flag (green), indicating higher levels could be in store.
Structures of Interest:
A breakout north of the current H1 bullish flag pattern would be interesting as the take-profit target rests just under 0.62 (blue arrows – measured by taking the value of the preceding move and adding it to the breakout point).
Structurally, monthly, daily and H4 timeframes point to a jolt lower. Therefore, trade the H1 bullish flag pattern with cautious steps.
In the event we dip through 0.59, this may encourage fresh breakout selling to 0.58, sited a few points north of daily supply-turned demand at 0.5664/0.5798.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Overwhelmed by the effects of the coronavirus pandemic, demand at 0.6358/0.6839 and 0.6094/0.5866 recently yielded, scoring seventeen-year lows at 0.5506.
Recent movement, therefore, exposed the possibility of another layer of demand at 0.5219/0.5426 entering the fray. This is also in line with the primary downtrend, lower since 2011.
Daily timeframe:
Partially altered from previous analysis -
Price action whipsawed through supply-turned demand at 0.5664/0.5798 and tested a well-grounded support level at 0.5563 in recent sessions. Shaped in the form of a near-full-bodied bullish candle, AUD/USD upside unfolded yesterday, closing in on a demand-turned supply base at 0.5926/0.6062, which contained downside (as demand) in October 2008.
With reference to the RSI indicator, we trade from unparalleled oversold levels right now, with the value seen bottoming off 10.00, currently attempting to nudge above 30.00.
H4 timeframe:
Partially altered from previous analysis -
Focus on the H4 timeframe remains on newly formed supplies. The latest area to grace the charts falls in around 0.6036/0.5978, which made an entrance on Friday, forcing moves to lows of 0.5746 into the close.
With the H4 candles consolidating gains around the lower boundary of the aforementioned supply zone, traders are urged to pencil in supply at 0.6147/0.6078, in the event antipodeans attempt to regain further upside today.
H1 timeframe:
Global equities rallied strongly Tuesday, sparking a risk-on environment, leading to the Australian dollar gaining against the greenback and conquering the 0.59 base, while shortly after retesting the latter as support. Aside from a fleeting move to lows at 0.5864 mid-way through London, 0.59 held strongly as support. Upside from this point faces opposition from the daily demand-turned supply base at 0.5926/0.6062 and H4 supply netted at 0.6036/0.5978.
Despite the obvious resistance, some analysts believe recent H1 action resembles a bullish flag (green), indicating higher levels could be in store.
Structures of Interest:
A breakout north of the current H1 bullish flag pattern would be interesting as the take-profit target rests just under 0.62 (blue arrows – measured by taking the value of the preceding move and adding it to the breakout point).
Structurally, monthly, daily and H4 timeframes point to a jolt lower. Therefore, trade the H1 bullish flag pattern with cautious steps.
In the event we dip through 0.59, this may encourage fresh breakout selling to 0.58, sited a few points north of daily supply-turned demand at 0.5664/0.5798.