Attractive P.A seen on the Aussie this morning, traders.
Early hours on Wednesday witnessed a sharp drop take shape in the Aussie market following a miss on Australian CPI figures, bringing the currency to lows of 0.7392. The market, however, made a swift U-turn here after H4 price failed to sustain losses sub 0.74. Shortly after, US President Trump and EU’s Juncker published a joint statement stating the two sides have agreed to work together to lower trade barriers and eliminate some tariffs, consequently strengthening risk appetite and sending the commodity currency northbound.
As of writing, the H4 candles are seen retesting support at 0.7443. The next upside target from this region falls in at 0.75/0.7479 (comprised of a round number at 0.75, a H4 resistance at 0.7491 and a daily resistance level coming in at 0.7479). Also of interest here is the approach. Note H4 price is in the process of printing two AB=CD formations (black and green arrows), both terminating at the underside of 0.75/0.7479.
In terms of weekly price, very little has changed over the last month. Demand at 0.7371-0.7442 remains in a fragile state. Continued indecisiveness here could open the window to a possible test of the 2016 yearly opening level at 0.7282 sometime down the road. In the event that the bulls regain consciousness, however, a retest of supply at 0.7812-0.7669 may be on the cards.
Areas of consideration:
0.75/0.7479 is a high-probability reversal zone, with the first downside target set at H4 support mentioned above at 0.7443. To avoid being whipsawed out of a trade from a (possible) fakeout above 0.75 (common viewing around psychological numbers), though, traders could consider waiting for H4 price to print a full or near-full-bodied bearish candle before pulling the trigger. Stop-loss orders can then be positioned above the candle’s rejection wick.
Today’s data points: US durable goods orders m/m; US unemployment claims.
As of writing, the H4 candles are seen retesting support at 0.7443. The next upside target from this region falls in at 0.75/0.7479 (comprised of a round number at 0.75, a H4 resistance at 0.7491 and a daily resistance level coming in at 0.7479). Also of interest here is the approach. Note H4 price is in the process of printing two AB=CD formations (black and green arrows), both terminating at the underside of 0.75/0.7479.
In terms of weekly price, very little has changed over the last month. Demand at 0.7371-0.7442 remains in a fragile state. Continued indecisiveness here could open the window to a possible test of the 2016 yearly opening level at 0.7282 sometime down the road. In the event that the bulls regain consciousness, however, a retest of supply at 0.7812-0.7669 may be on the cards.
Areas of consideration:
0.75/0.7479 is a high-probability reversal zone, with the first downside target set at H4 support mentioned above at 0.7443. To avoid being whipsawed out of a trade from a (possible) fakeout above 0.75 (common viewing around psychological numbers), though, traders could consider waiting for H4 price to print a full or near-full-bodied bearish candle before pulling the trigger. Stop-loss orders can then be positioned above the candle’s rejection wick.
Today’s data points: US durable goods orders m/m; US unemployment claims.
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