I believe that we shall see further weakness in the US Dollar as we have seen as of late. I choose to analyse the US dollar as it gives us an insight to how the currency may perform in the coming week against its counterparts. I have arrived at a bearish conclusion as the index is putting in lower swing highs with lower swing lows. Furthermore, we have developed ...
This pair is putting in consistent lower highs, hence the bearish bias. MA's have crossed over bearish as price began to slide. A double top was printed, target 1 being the neckline (already hit), target 2 the added range from the double top and target 3 at 0.705. From this level I shall watch price action to make my next move.
Looking for a break of the inner TL here, first target laying at the -0.27 extension, confluent with the added ranges of the recent double top formation. This currency pair is also positively correlated with the Dollar index, which is also showing signs of weakness. It also has a inverse correlation with Crude oil which is showing some signs of strength.
Consolidation occurring in AU at the moment. Target to the upside = range of triangle mouth, confluent with 61.8% fib level. Downside target (preferred as in the direction of the trend, although less likely due to the dollar weakness we are experiencing in the DXY) = range of mouth added confluent with a key level of support.