AUDUSD CHART ANALYSIS: BEARISH
AUDUSD upswing rejected at Triangle ground support-turned-resistance Break of upward-sloping help hints dominant downtrend again in play Total positioning suggests a transfer to decade lows could also be within the works
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The Australian Greenback recoiled from support-turned-resistance marking the ground of a just lately accomplished Descending Triangle sample. The chart formation itself carries bearish implications and the costs’ violent rejection on a retest of its parameters appears to bolster the case for weak point, portray the rise from mid-June lows as corrective within the context of a bigger decline.
Actually, costs have now damaged help guiding current beneficial properties on a closing foundation, imbuing the draw back situation with a way of urgency. Fast help strains up within the zero.6827-65 space, the positioning of current swing bottoms in addition to the January 2016 low. Pushing under that places the 2019 spike low at zero.6744 within the crosshairs. Invalidating the setup’s bearish doubtless requires a topside breach of the Triangle prime, now at zero.7101.
A still-more ominous image presents itself upon inspecting longer-term positioning on the weekly chart. A conservative measuring the Triangle’s implied draw back goal by making use of the gap at its widest level to the purpose of breakout suggests a decline to problem the zero.67 determine is within the works forward. That might put the Aussie on the lowest in over a decade in opposition to its US counterpart.
AUDUSD TRADING RESOURCES
— Written by Ilya Spivak, Forex Strategist for DailyFX.com
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