Thursday, May 17, 2018

AUD/USD Is Developing A Bearish Correction

The expected bearish correction began, but as most corrections on the W1 and D1 time frames, it is very slow to develop and it will take time to end.

The pair reached the local low at 0.74121 crowned by a pin bar on the D1 and H4 time frames, and began a movement that so far looks like a wide consolidation.

A trend channel is developing on the D1 time frame, and the next resistance level is in the zone around 0.7580 -0.7600, but in my opinion the expectation that the correction will reach 0.7640 – 0.7650 remains valid.

After reaching that resistance level we could expect for the depreciation to continue while the strong support would be around 0.7230 – 0.7220.