The Australian Dollar on Monday stopped the surge against the US Dollar, as the pair encountered medium term ascending channel pattern’s resistance line. Moreover, the resistance was strengthened by the weekly R1 at the 0.7960 level.
Due to that reason it is expected that the most junior channel up pattern will soon be broken, and a new junior pattern will be formed. The expected to be pattern is most likely going to guide the pair almost horizontally.
The basis for such hypothesis are the signals given by the aggregate technical indicator and the fact that after such a sharp surge, which happened after January 12, a period of consolidation should occur.
Due to that reason it is expected that the most junior channel up pattern will soon be broken, and a new junior pattern will be formed. The expected to be pattern is most likely going to guide the pair almost horizontally.
The basis for such hypothesis are the signals given by the aggregate technical indicator and the fact that after such a sharp surge, which happened after January 12, a period of consolidation should occur.
Comment:
The Australian Dollar has traded with increased volatility against the US Dollar since the last review. The reason was the pair’s bouncing between two competing levels of significance.
Namely the pair bounced between the support of a medium term ascending channel and the resistance of the dominant channel up pattern. Due to that reason in a longer term the pair might continue to be squeezed in between these two levels until the two trend lines meet and a break out occur.
However, in regards to the near future, the pair is likely going to find support in the 0.7960 mark and begin a short term surge up to the 0.80 level.
The Australian Dollar has traded with increased volatility against the US Dollar since the last review. The reason was the pair’s bouncing between two competing levels of significance.
Namely the pair bounced between the support of a medium term ascending channel and the resistance of the dominant channel up pattern. Due to that reason in a longer term the pair might continue to be squeezed in between these two levels until the two trend lines meet and a break out occur.
However, in regards to the near future, the pair is likely going to find support in the 0.7960 mark and begin a short term surge up to the 0.80 level.
Comment:
There are two notable developments on the AUD/USD currency exchange rate’s charts.
First is the fact that the pair touched the upper trend line of a dominant ascending channel pattern. Although, after two hours of fluctuating near the trend line, the currency pair retreated back below the level of significance.
Secondly, the retreat passed the previously drawn medium patterns support line. However, the decline was stopped by the 100-hour simple moving average. In addition, that rebound point provided a point of reference for adjusting the pattern.
Regarding the near future, the pair will target the 0.8020 mark again.
There are two notable developments on the AUD/USD currency exchange rate’s charts.
First is the fact that the pair touched the upper trend line of a dominant ascending channel pattern. Although, after two hours of fluctuating near the trend line, the currency pair retreated back below the level of significance.
Secondly, the retreat passed the previously drawn medium patterns support line. However, the decline was stopped by the 100-hour simple moving average. In addition, that rebound point provided a point of reference for adjusting the pattern.
Regarding the near future, the pair will target the 0.8020 mark again.
Comment:
As the AUD/USD pair reached the previously set target of 0.8020 and lingered near it through the most part of the first half of Friday’s trading session.
That continued until the pair suddenly broke past the mentioned mark and quickly touched and bounced off the resistance at 0.8040.
The encounter had resulted in a decline, which was set to go down as low as 0.80. At 0.80 mark the currency pair is set to meet various support levels.
Namely, the 55 and 100-hour SMA’s were approaching from the downside, a monthly pivot level was located at the 0.80 mark and the lower trend line of a medium term pattern was tilted to the upside near the mentioned level.
That continued until the pair suddenly broke past the mentioned mark and quickly touched and bounced off the resistance at 0.8040.
The encounter had resulted in a decline, which was set to go down as low as 0.80. At 0.80 mark the currency pair is set to meet various support levels.
Namely, the 55 and 100-hour SMA’s were approaching from the downside, a monthly pivot level was located at the 0.80 mark and the lower trend line of a medium term pattern was tilted to the upside near the mentioned level.
Comment:
The support cluster on the AUD/USD pair’s chart, which was described on Friday did not hold its ground for long. Instead the pair fell below the lower trend line of the previously active medium size channel up pattern and the 55-hour SMA, which were located just below the 0.80 mark.
However, the decline was stopped by the combined effort of the 100-hour SMA and the weekly PP at the 0.7980 level.
Due to that reason it can be assumed that the rate is done with scoring new high levels and a medium term downwards movement will begin.
However, the decline was stopped by the combined effort of the 100-hour SMA and the weekly PP at the 0.7980 level.
Due to that reason it can be assumed that the rate is done with scoring new high levels and a medium term downwards movement will begin.
Comment:
Although it was expected that the Australian Dollar will begin a surge against the US Dollar after meeting with the lower trend line of a long term channel up pattern, the pair began the surge a lot earlier.
The 200-hour simple moving average proved that it has enough support to force the currency exchange rate higher. The subsequent surge was only slowed down by the combined resistance of the 55 and 100-hour simple moving averages just below the 0.80 mark.
In regards to the future, the pair sis et to extend its ascent and most likely reach the 0.81 level.
The 200-hour simple moving average proved that it has enough support to force the currency exchange rate higher. The subsequent surge was only slowed down by the combined resistance of the 55 and 100-hour simple moving averages just below the 0.80 mark.
In regards to the future, the pair sis et to extend its ascent and most likely reach the 0.81 level.
Comment:
As expected, the Aussie continued its surge against the US dollar just as every other major currency. By the end of Wednesday's trading session, the pair had breached and moved past the dominant channel to the upside.
A new junior channel has been mapped to monitor the market movement since the previously drawn pattern has been broken by the strength of the Aussie.
In regards to the future, the bulls are likely to continue the push upwards until it
finds resistance at 0.814 level.
A new junior channel has been mapped to monitor the market movement since the previously drawn pattern has been broken by the strength of the Aussie.
In regards to the future, the bulls are likely to continue the push upwards until it
finds resistance at 0.814 level.
As it was expected, the Australian Dollar continued to consolidate against the US Dollar in the last 24 hours up to the middle of Tuesday’s trading. Moreover, the consolidation has been mapped by a new active junior pattern.
In regards to the future, the pair has encountered the support of the newly drawn channel down pattern and rebounded. Due to that reason the pair is expected to approach the resistance of the weekly R1, which located at the 0.7960 mark.
Moreover, the surge is expected to occur due to the approaching additional support of the 55-hour simple moving average.