Weekly closing price: 0.7535
Weekly view: The past week saw the AUD/USD pair chalk up an absolutely beautiful-looking selling wick. Not only did it pierce through a seen at 0.7604 but it also managed to extend past a resistance taken from the high 0.8295. From a technical perspective, this certainly indicates that the commodity currency may further depreciate this week down to the at 0.7438-0.7315, which is complemented by a channel support line extended from the low 0.6827.
Daily view: Before we all go and punch the sell button though, one has to be aware of their surroundings! On the , price closed the week just ahead of a seen at 0.7517-0.7451 (fuses with a support and sits just above the current weekly ), which, as you can see, has managed to hold this market higher since early July! Should price break below this area, however, there’s a good chance that the unit will selloff down to 0.7334: a located within the extremes of the above said weekly .
H4 view: A brief look at recent dealings on the H4 chart, reveal that Friday was certainly not a good day for anyone long! Comments made by Fed member Eric Rosengren pressured this market lower as the US dollar index went on to touch highs of 95.58. The 0.76 handle was wiped out as was the H4 mid-level support 0.7550, with the currency closing just ahead of a H4 Quasimodo drawn from 0.7525.
Direction for the week: Well, looking solely at the weekly chart, one could say that this pair is likely headed lower. Be that as it may, taking into consideration that there’s a nearby daily , which is positioned just above the weekly chart’s next downside target: the at 0.7438-0.7315, direction for this pair is restricted as far as higher-timeframe structures go.
Direction for today: A push lower is likely to take place, since there’s little support standing in the way until the H4 Quasimodo support sat at 0.7525 along with another H4 Quasimodo support at 0.7500.
Our suggestions: On account of the above points, the above said H4 Quasimodo supports will likely be key levels going into the week, with the lower Quasimodo line at 0.7500 being the more attractive of the two. Not only does it unite beautifully with the 0.75 handle, it also sits within the aforementioned daily , whereas the upper Quasimodo line does not. As such, we would, dependent on the approach and time of day, look to enter long from 0.75 at market with a small stop below at 0.7485. The H4 Quasimodo support at 0.7525 on the other hand, would, at least for us, require a strong H4 close before we’d consider buying from here.
Levels to watch/live orders:
• Buys: 0.7525 region tentative – H4 close required (Stop loss: below the trigger candle). 0.75 (Stop loss: 0.7485).
• Sells: Flat (Stop loss: n/a).