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