#AUDUSD @ 0.66922 ´s 0.6720s on the upside are key.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
- AUD/USD´s 0.6720s on the upside are key.
- A break of 0.6670s and then the 0.6650s opens risk to the 0.6620s as the last defense for a significant run lower.
The Australian Dollar was not far from four-month lows touched in March in mid-week trade while investors weigh the monetary policy outlook domestically and abroad and US-China tensions. However, AUD/USD is poised bearish on the chart as the following technical top-down analysis illustrates:
It was stated in the prior analysis, that AUD/USD had pulled back into the neckline of the M-formation in a 50% mean reversion of the hourly impulse. This area was anticipated to act as resistance ´´and lead to an eventual break of the trendline support and then 0.6650.´´
This particular analysis played out as illustrated above. Over the course of the days, the price continued lower:
This is significant in relation to the overall bearish thesis as outlined in the prior analysis on the daily chart:
Cleaning up the chart a touch and zooming in, we can see when drawing the Fibonacci measurement tool on the correction´s length, the -272% ratio aligns with the targetted 0.6500s.
Cleaning up the chart even more so, we can see the break of the support structure, pull back into a 61.8% resistance area, and restest of the counter trendline. A premium has been given to the bears looking to get in on the break of structure who are targeting a significant downside breakout of the geometrical pattern towards 0.6500:
Meanwhile, there are a number of key levels and market structures as illustrated on the 4-hour chart. 0.6720 on the upside is key and should this fend off the bulls, then a break of the 0.6670s and then the 0.6650s opens risk to the 0.6620s as the last defense for a significant run lower towards 0.6550 and 0.6500 thereafter.
[/s2If]
Join Our Telegram Group
