The AUD/USD currency pair is experiencing a retracement after successfully breaking below the Head and Shoulders pattern. Currently the price is hanging around the PP point. We are currently in the POC zone and a reversal pattern could tank the price. The rise in US yields might also follow with the USD appreciation. If long term yields rise, we might see a higher volatility and pressure on emerging markets, thus making the AUD currency weaker. As no major data is scheduled for the AUD, we might see technical analysis prevail at this point. Don’t forget to follow our Forex calendar for all regular updates on the news,economic announcements, forecasts and much more.

Technically, the AUD/USD currency pair might exhibit a higher volatility during the Tokyo and US session. The rejection from the POC 1.7100-15 could fuel another bearish momentum. If the price retreats to POC2 1.7130-45 that could be the last line of the defense for bears. Above that the price is bullish and potentially we might see 0.7290 as a bullish target. Rejections from any of the POC zones should target 0.7050 and 0.6980. Always pay attention to price action before you start making new entries, as the price might possibly be making a fake move.

Pivot Lines – Weekly Support and Resistance

- advertisement -

POC – POC – Point Of Confluence (The zone where we expect the price to react – aka the entry zone)

Previous articleGBPUSD Outlook: Sterling Extends Gains On Positive Brexit News, Techs Are Mixed And UK Data In Focus
Next articleUSD/JPY Triangle Pattern Waiting For Decisive Breakout
The Wave Analysis it for today the most flexible, powerful and perspective tool which allows to predict tendencies which lead to certain changes on financial charts on all time pieces. One of properties of this tool is its insufficient formalisation, proceeding from it the opinion of the author of the forecast made on the basis of the Wave Analysis always is subjective. As the Wave Structure constantly varies, the forecast on the basis of the Wave Analysis reflects opinion of the author at the moment of the forecast publication. The Wave Analysis is not trading system. It not the generator of signals on the conclusion or an exit 1from the transaction, therefore the schematical direction of movement of the price put on the chart should not be for the trader the guide to action on opening of positions. In case of formation in the market of conditions which, according to the author it is possible to use for drawing up of the trading plan - on a chart levels of acknowledgement of the chosen scenario, optimum areas of an input and levels of cancellation of the chosen scenario will be specified in addition.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.