With similarities to Aussie on the weekly time-frame we saw price form a bullish retracement to retest the downtrend at the back-end of last week. This was off the back of positive fundamentals and price seems to have formed it's lower high, rejecting the trend which is also in line with the refined Fibonacci region. Price has already broken the simple moving average and is testing the exponential moving average as support. Given the overall trend we remain bearish on this pair but we'd require a break back through this area of dynamic support before confirming our next leg to the downside targets at 1.3100, 1.3075 and 1.300. Should price hold at this level we'd require a break of the downward trend and moving average crossover to confirm bullish advancements. There are multiple resistance barriers for price to break through in confluence here so while possible I can't see the upside as a likely scenario.
Trade closed: target reached:
Price hit our target less than 16 hours after placing the trade. Price spiked through our target region before reversing. This highlights the importance of properly placed profit and stop levels