AUDUSD Weekly Technical Outlook
The southward move which AUDUSD began in September 2017 has continued. On the weekly time frame, two bearish price waves have been formed. Last week, a third price wave southward kicked in with a bearish pinbar around the monthly central pivot breaking down a consolodiation zone. We may expect a consummation of this southward move in the days ahead. A likely target of bears is the 0.73350 area.
On the daily time frame, it is apparent that the order flow is under the control of bears as attempts by bulls to push price to higher grounds were effectively neutralized. The formation of relatively big candlesticks with long upper wicks is an indication of the intent of bears to consummate their southward operation. However, how bears tackle the next support zone around the 0.74660 area is crucial. We may see a sideways operation in that area or even a brief pullback before the descent continues. Currently, price action is within a descending channel and it has to break below the channel support line before an increase in southward momentum can be expected.
I may be wrong. Trade safe and prosper.
KP
The southward move which AUDUSD began in September 2017 has continued. On the weekly time frame, two bearish price waves have been formed. Last week, a third price wave southward kicked in with a bearish pinbar around the monthly central pivot breaking down a consolodiation zone. We may expect a consummation of this southward move in the days ahead. A likely target of bears is the 0.73350 area.
On the daily time frame, it is apparent that the order flow is under the control of bears as attempts by bulls to push price to higher grounds were effectively neutralized. The formation of relatively big candlesticks with long upper wicks is an indication of the intent of bears to consummate their southward operation. However, how bears tackle the next support zone around the 0.74660 area is crucial. We may see a sideways operation in that area or even a brief pullback before the descent continues. Currently, price action is within a descending channel and it has to break below the channel support line before an increase in southward momentum can be expected.
I may be wrong. Trade safe and prosper.
KP
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