Climbing down into the , back-to-back daily selling wicks have recently took shape, both piercing through the top edge of a daily drawn from 0.7719-0.7665. By the same token, the next downside target on this scale comes in at the above said weekly , which fuses beautifully with a daily channel support line taken from the low 0.7148.
Over on the H4 chart, the buyers have been struggling to hold the 0.77 handle, despite an earnest attempt going into the early hours of yesterday’s sessions. Should the current H4 candle close beyond the 0.77 boundary, we may, as we highlighted in yesterday’s report, have a possible sell trade on our hands.
Our suggestions: Watch for price to close below 0.77 today. A retest to the underside of this number followed by a lower timeframe sell signal, we could see the Aussie drop lower from here to at least test the H4 mid-way support at 0.7650, which makes for a beautiful first take-profit target.