Working our way from the top this morning, we can see that weekly movement recently connected with a weekly trendline resistance taken from the high 0.8895. Should offers hold ground here, a push back down to test the weekly support boundary at 0.7604 may be on the cards. Looking down to the daily chart, the commodity-linked currency recently spiked above a daily supply zone drawn from 0.7719-0.7665. This – coupled with the overhead weekly trendline resistance, could help force prices lower today.
Turning our attention to the H4 chart, yesterday’s upside momentum swallowed the 0.77 handle and went on to collide with a H4 channel resistance line extended from the high 0.7565. As is shown on the chart, bids/offers appear even right now as price seesaws between the above said H4 channel resistance and the 0.77 number.
Our suggestions: Watch for price to close below 0.77 today. Accompanied with a retest, the Aussie will likely drop lower to at least test the H4 mid-way support at 0.7650, which makes for a beautiful first take-profit target.
Comments
Shunya0x
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Thanks for this. Had setup a short couple of days back and was getting pounded. I trade through ICmarkets itself, and good to know you guys share awesome insights.