AUDUSD - Bouncing Off Key Support Levels
The Aussie tumbled lower on Friday (17th of July) closing the day @ 0.73685 after bouncing off a key monthly resistance level found @ 0.74226.
While there are no clear candlestick patterns found on the 4 hour or daily chart to signal a long term buy/sell entry, there's still potential for the Aussie to retest the monthly resistance level.
Why? Each time the support level has been reached, prices pulled back at least 50% of the range area.
Range Area: (Highlighted by the blue box)
High = 0.74850
Low = 0.73700
____________
50% Target = 0.74275
CONCLUSION: SHORT TERM PULL BACK - RANGING MARKET TO RESUME
The overall trend is still bearish (Long Term), however since there's no evidence of a bull/bear candlestick pattern found on the daily or 4 hour chart,
expect prices to continue ranging in the interim until a clear pattern presents itself.
While there are no clear candlestick patterns found on the 4 hour or daily chart to signal a long term buy/sell entry, there's still potential for the Aussie to retest the monthly resistance level.
Why? Each time the support level has been reached, prices pulled back at least 50% of the range area.
Range Area: (Highlighted by the blue box)
High = 0.74850
Low = 0.73700
____________
50% Target = 0.74275
CONCLUSION: SHORT TERM PULL BACK - RANGING MARKET TO RESUME
The overall trend is still bearish (Long Term), however since there's no evidence of a bull/bear candlestick pattern found on the daily or 4 hour chart,
expect prices to continue ranging in the interim until a clear pattern presents itself.