Saturday, June 02, 2018

I Expect An AUD/USD Rally

I think we can be quite certain that AUD/USD will form a correction to the upside before it renews the downward trend.

On the picture I have marked where the correction might reach in the light purple resistance zone (0.7700 – 0.7820). The signals are on the monthly and W1 time frames.

We may see a rally for a test of the high at 0.8100 – 0.8130.

The signals for the impending rally are the following:
On the monthly time frame there is a clear pin bar for May called a “boiling point”. That name expresses well the way it forms – a lengthy consolidation on the W1 and D1 time frames.

On the W1 time frame there are five closed bars that are a signal for a move north to the above mentioned levels.

On the D1 time frame the first resistance zone is at 0.7600 – 0.7630. If the pair overcomes that resistance we could expect a rally toward the next resistance zone at 0.7660 – 0.7690.