AUD/USD:
On-going trade concerns along with a modestly rising US dollar had the Australian dollar nursing losses sub 0.70 heading into Wednesday’s close. The next downside target on the H4 timeframe , according to our technical studies, can be seen around a 161.8% ABCD measured move (black arrows) that completes around 0.6968/0.6976 (green). Beyond here, the research team has channel support extended from the low 0.6988, followed by the round number 0.69 (not visible on the screen).
According to the higher-timeframe structure, further selling is likely on the cards. Weekly flow is retesting the underside of its 2019 yearly opening level at 0.7042. An established move below here has support at 0.6828 to target. In conjunction with weekly movement, the daily timeframe also exhibits scope to explore lower ground beneath its resistance at 0.7062, steering for a move towards support at 0.6907.
Areas of consideration:
Entering long from the H4 ABCD measured move mentioned above at 0.6968/0.6976 is chancy, given the higher-timeframe’s position. The same goes for the H4 channel support, too. The only area of support the research team has highlighted as feasible is the 0.69 handle, in light of its relationship with daily support at 0.6907.
Before price reaches 0.69, traders might wish to consider selling the underside of 0.70. In the event this number is retested in the shape of a H4 bearish candlestick formation (entry and risk can then be adjusted according to this pattern’s structure), a sell has a strong chance of reaching as far south as 0.69ish.
Today’s data points: China CPI y/y; Fed Chair Powell Speaks; US PPI m/m; US Core PPI m/m.
On-going trade concerns along with a modestly rising US dollar had the Australian dollar nursing losses sub 0.70 heading into Wednesday’s close. The next downside target on the H4 timeframe , according to our technical studies, can be seen around a 161.8% ABCD measured move (black arrows) that completes around 0.6968/0.6976 (green). Beyond here, the research team has channel support extended from the low 0.6988, followed by the round number 0.69 (not visible on the screen).
According to the higher-timeframe structure, further selling is likely on the cards. Weekly flow is retesting the underside of its 2019 yearly opening level at 0.7042. An established move below here has support at 0.6828 to target. In conjunction with weekly movement, the daily timeframe also exhibits scope to explore lower ground beneath its resistance at 0.7062, steering for a move towards support at 0.6907.
Areas of consideration:
Entering long from the H4 ABCD measured move mentioned above at 0.6968/0.6976 is chancy, given the higher-timeframe’s position. The same goes for the H4 channel support, too. The only area of support the research team has highlighted as feasible is the 0.69 handle, in light of its relationship with daily support at 0.6907.
Before price reaches 0.69, traders might wish to consider selling the underside of 0.70. In the event this number is retested in the shape of a H4 bearish candlestick formation (entry and risk can then be adjusted according to this pattern’s structure), a sell has a strong chance of reaching as far south as 0.69ish.
Today’s data points: China CPI y/y; Fed Chair Powell Speaks; US PPI m/m; US Core PPI m/m.
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