AUD/USD tested the support trendline of the pennant that formed between 26th May to 26th August 2016 after it broke below it and today the pair continued falling.
The limit of the figure you can see on the chart is, as we know, the height of the pennant at its base, projected from the breakout level to the downside.
That means that AUD/USD will drop at least 380 – 390 pips from the breakout level at 0.7607, in other words, it should reach at least 0.7230.
Since such a drop would mean that the pair would break below the support trendline of the correction that began at the beginning of January 2016 (the dark-blue line), that could signal a renewal of the bearish trend.
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ReplyDeleteGood point! I'll keep an eye on it.
ReplyDeleteGreat daily note, thank you.
ReplyDeleteInteresting analysis, thanks for sharing!
ReplyDeleteGood analysis, thank you.
ReplyDeleteGreat analysis!
ReplyDeleteThanks for sharing your point of view.
ReplyDeleteLooks like it will keep pushing lower.
ReplyDeleteGood drop on gold, but it is still oscillating.
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