AUDUSD Capped by Trend Line Resistance, 0.7608 Is Support
Apart from Monday’s session, the AUDUSD lost ground every day last week. It started with Tuesday’s bearish engulfing day and ended with a slight loss on Friday after a test of 0.7608 support.
A quick study of the weekly chart shows what appears to be a twelve-month wedge pattern. The structure began developing after the 2,600 pip landslide that took place between June 2014 and January 2016.
Given that the wedge has formed after a steep downtrend, it could very well be a bearish continuation pattern. But like every terminal structure, we won’t have a definitive answer until the market breaks support or resistance.
For the week ahead, sellers need a daily close below 0.7608 to further last week’s decline. Such a break would expose the next level of support at 0.7500. Alternatively, a bounce from current levels would likely encounter selling pressure near 0.7725.
A quick study of the weekly chart shows what appears to be a twelve-month wedge pattern. The structure began developing after the 2,600 pip landslide that took place between June 2014 and January 2016.
Given that the wedge has formed after a steep downtrend, it could very well be a bearish continuation pattern. But like every terminal structure, we won’t have a definitive answer until the market breaks support or resistance.
For the week ahead, sellers need a daily close below 0.7608 to further last week’s decline. Such a break would expose the next level of support at 0.7500. Alternatively, a bounce from current levels would likely encounter selling pressure near 0.7725.
