0.7350 eyed as possible resistance, traders...
AUD/USD:
Weekly Gain/Loss: +1.54%
Weekly Close: 0.7330
Weekly perspective:
The Australian dollar rallied strongly against its US counterpart last week, consequently shipping price action above its 2016 yearly opening level at 0.7282 and settling just south of notable resistance priced in at 0.7371. This resistance has served as a critical level in this market for a number of years, and therefore may hinder further upside this week.
Daily perspective:
Closer analysis shows resistance plotted at 0.7350 as the next upside hurdle on the daily scale, which happens to unite with a trend line resistance (extended from the high 0.7483). Although a reaction from here is likely, it is worth noting active buyers may reside close by at 0.7304: a resistance-turned support level. In the event the market pushes for higher ground this week, traders’ crosshairs will likely be fixed at another layer of resistance drawn from 0.7453.
H4 perspective:
A brief sketch of Friday’s movement on the H4 timeframe reveals the commodity currency witnessed a resurgence of bidding in US hours. The US dollar index, which started the day a little above its 97 handle, lost traction on comments made by US President Trump, along with some cautious remarks about contagion from slower global growth via Fed’s Clarida and Kaplan. A waning buck provided the AUD/USD impetus to overthrow its 0.73 handle, leaving the path free for a potential approach towards a Quasimodo resistance level at 0.7346.
Areas of consideration:
On account of the above, a short from the H4 Quasimodo resistance level at 0.7346 is an option today/early week. What’s appealing about this level is the fact it converges closely with daily resistance at 0.7350 and its associated trend line resistance. Note we also have the weekly resistance plotted just twenty pips above here at 0.7371, and the H4 RSI indicator displaying an overbought reading.
Aggressive traders likely have eyes on 0.7350 for a short with stop-loss orders planted a few pips beyond weekly resistance at 0.7371. Conservative traders, on the other hand, may opt to wait and see how H4 price action behaves before pulling the trigger. A bearish candlestick formation would help confirm seller interest, and also provide entry/stop parameters thus possibly offering better risk/reward should the unit test weekly resistance.
In terms of take-profit targets from the 0.7350 region, the 0.73 handle appears a logical starting point owing to daily support also merging with this level at 0.7304.
Weekly Gain/Loss: +1.54%
Weekly Close: 0.7330
Weekly perspective:
The Australian dollar rallied strongly against its US counterpart last week, consequently shipping price action above its 2016 yearly opening level at 0.7282 and settling just south of notable resistance priced in at 0.7371. This resistance has served as a critical level in this market for a number of years, and therefore may hinder further upside this week.
Daily perspective:
Closer analysis shows resistance plotted at 0.7350 as the next upside hurdle on the daily scale, which happens to unite with a trend line resistance (extended from the high 0.7483). Although a reaction from here is likely, it is worth noting active buyers may reside close by at 0.7304: a resistance-turned support level. In the event the market pushes for higher ground this week, traders’ crosshairs will likely be fixed at another layer of resistance drawn from 0.7453.
H4 perspective:
A brief sketch of Friday’s movement on the H4 timeframe reveals the commodity currency witnessed a resurgence of bidding in US hours. The US dollar index, which started the day a little above its 97 handle, lost traction on comments made by US President Trump, along with some cautious remarks about contagion from slower global growth via Fed’s Clarida and Kaplan. A waning buck provided the AUD/USD impetus to overthrow its 0.73 handle, leaving the path free for a potential approach towards a Quasimodo resistance level at 0.7346.
Areas of consideration:
On account of the above, a short from the H4 Quasimodo resistance level at 0.7346 is an option today/early week. What’s appealing about this level is the fact it converges closely with daily resistance at 0.7350 and its associated trend line resistance. Note we also have the weekly resistance plotted just twenty pips above here at 0.7371, and the H4 RSI indicator displaying an overbought reading.
Aggressive traders likely have eyes on 0.7350 for a short with stop-loss orders planted a few pips beyond weekly resistance at 0.7371. Conservative traders, on the other hand, may opt to wait and see how H4 price action behaves before pulling the trigger. A bearish candlestick formation would help confirm seller interest, and also provide entry/stop parameters thus possibly offering better risk/reward should the unit test weekly resistance.
In terms of take-profit targets from the 0.7350 region, the 0.73 handle appears a logical starting point owing to daily support also merging with this level at 0.7304.
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