The AUDUSD has been in an up trend that had seemed to be over a month ago. And yet it continued higher. The key support level at 0.9208 proved to be very strong and, if tested, is expected to stall any potential decline. There are both bullish and bearish signs here.
What is particularly bullish about this market is its adamant tendency to climb higher, even after the bull trend line break. Price keeps following the up slope within the up fork and is still above the major low in terms of slope. It hasn't reached 100% size projection of that big Sep-Oct 2013 swing up.
On the other hand, the upthrust above the price level of the last major swing high looks like a fakeout - price reached the 0.764 retracement level and vehemently turned back down. Harmonic traders would notice a bearish butterfly. Market has reached the upper border of the big channel it has been trading within since Aug 2013.
And overall price action seems to be pretty much rangebound. And it's no wonder why - the relative strength of both AUD and the USD has been somewhat neutral, somewhat weak.
What's next? We can expect some bullish price action, esp. as long as we're above the support of 0.932 level. If resistance at 0.946 holds, a swing down will probably begin. Otherwise, another breakout may be this time successful and we'll see it test the Oct swing high at 0.975.
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Disclaimer:
There is a very high degree of risk involved in trading forex. I assume no responsibility or liability for any trading or investment results. My posted statements and charts may unintentionally include inaccuracies. All content posted is for educational purposes only and is not a financial advice. The presented set-ups are not solicitations of any order to buy or sell.
What is particularly bullish about this market is its adamant tendency to climb higher, even after the bull trend line break. Price keeps following the up slope within the up fork and is still above the major low in terms of slope. It hasn't reached 100% size projection of that big Sep-Oct 2013 swing up.
On the other hand, the upthrust above the price level of the last major swing high looks like a fakeout - price reached the 0.764 retracement level and vehemently turned back down. Harmonic traders would notice a bearish butterfly. Market has reached the upper border of the big channel it has been trading within since Aug 2013.
And overall price action seems to be pretty much rangebound. And it's no wonder why - the relative strength of both AUD and the USD has been somewhat neutral, somewhat weak.
What's next? We can expect some bullish price action, esp. as long as we're above the support of 0.932 level. If resistance at 0.946 holds, a swing down will probably begin. Otherwise, another breakout may be this time successful and we'll see it test the Oct swing high at 0.975.
-----------
Disclaimer:
There is a very high degree of risk involved in trading forex. I assume no responsibility or liability for any trading or investment results. My posted statements and charts may unintentionally include inaccuracies. All content posted is for educational purposes only and is not a financial advice. The presented set-ups are not solicitations of any order to buy or sell.
