Tuesday, July 17, 2018

AUD/USD May Renew Its Depreciation To Test 0.7220

AUD/USD continues consolidating between the resistance in the zone around 0.7440 – 0.7450 and the support in the zone around 0.7320 – 0.7240.

The fact that the pair remains within this relatively wide consolidation for so long without managing to stay above 0.7450 and is practically forming a sideways correction is a signal that AUD/USD is not done depreciating. In case the pair falls below 0.7310 then it will reach the next support at 0.7220 without a doubt. We may even see a deeper depreciation to 0.7150 – 0.7100.

Such a drop would form eleven waves to the downside, after which we may expect a correction north.