- Fortunately for the Aussie, the poor US housing data that was released yesterday gave the currency pair a necessary impulse to break through the 200-hour , the weekly PP at 0.7895 and even slightly overstep the weekly R1 at 0.7951.
- But then the rate became overbought and, thus, started to decline.
- In theory, today the Greenback has to try to restore some of the lost positions and slide to the 0.7852 level.
- Nevertheless, the buck is expected to fail to climb below the combined , which is formed by the above weekly PP in conjunction with the 200-, 100- and 55-hour SMAs.
- This scenario is supported by a summary of technical indicators, which also sends a strong buy signal for the 5H and 1D timeframes.
- In the meantime, the market sentiment remains 62% .
As it was expected, the currency exchange rate failed to bypass a combined support level set up by the weekly PP at 0.7895 in conjunction with the 200-, 100- and 55-hour SMAs. Accordingly, it made a rebound and started to move again in the upward direction to the weekly R1 at 0.7951.
A summary of technical indicators suggests that the pair will succeed to break though that pivot point and continue the surge. Most probably, this projection to certain extent is related to the fact that the currency rate has entered into a little ascending channel with two reaction lows and one reaction high.
If this pattern actually exists, the pair, indeed, might have a necessary strength to soar towards the weekly R2 at 0.8005, which will be updated on Monday.
Unfortunately, the average market sentiment neither confirms, nor refutes the above scenario, as it is only 54% bullish.
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