ICmarkets

AUD/USD: Some interesting price action on the Aussie!

FX:AUDUSD   Australian Dollar/U.S. Dollar
185 0 2
Weekly Timeframe: The recent momentum seen over the past two weeks has brought price down to a weekly Quasimodo support level at 0.88189, which should produce a bounce at the very least, since weekly demand is sitting directly below at 0.86591-0.88247.

Daily Timeframe: The daily timeframe however is telling a different story. Monday’s trading sessions saw a bearish daily close below the 0.88874 level, coupled with a successful, albeit deep retest (as resistance) seen on Tuesday. This move has potentially cleared the path south towards a daily Quasimodo support level at 0.87556 (located within weekly demand at 0.86591-0.88247), which, theoretically would mean the weekly Quasimodo support level at 0.88189 could fail, and prices may trade deeper into the aforementioned weekly demand area, very interesting indeed!

4hr Timeframe: A deep retest of the 0.89 level was seen, from there on the Aussie sold off sharply coming within a few pips of hitting a 4hr support flip level at 0.88223 (price action confirmation buy level set just above at 0.88262).

As one can already see, the higher timeframes are giving conflicting signals at the moment; the weekly is firmly sitting around a weekly Quasimodo support level (0.88189), while the daily timeframe has just successfully retested a newly-formed resistance level at 0.88874. We are fully aware that the higher timeframes usually overrule the lower, and with that in mind, we do expect higher prices to be seen eventually, but the question is when?, and more importantly, where? Any prospective area or level of demand on the 4hr timeframe will be treated as a viable option to go long from, if price confirms the level by consuming opposing supply in the process.

Pending orders/Price action confirmation levels:

• Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: 0.88262 (Stop loss: Dependent on price action after the level has been confirmed, Take profit levels(s): Dependent on approaching price action after the level has been confirmed).

• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.
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