AUD/USD broke out below the pennant that had been developing for over two years and from now on we can expect a medium or long term depreciation with a first target to the downside at 0.7200.
For the moment, however, the pair has reached a strong support on the W1 time frame at 0.7500 and here there are two possible scenarios:
In case there is a breakout below that support level we could expect a continuation of the downward trend to the first target at 0.7200 without a significant correction.
In case the support at 0.7500 holds and the pair fails to break out below it the first time we could see a correction north to test the trend line it broke out below with target around 0.7650 – 0.7700.
On the M15, however, we can see an expanding triangle which could prove to be a reversal figure and the pair could rally for a correction and a test of the breakout before it continues falling.
Looks like its getting ready to push lower.
ReplyDeleteThe move to the downside continues.
ReplyDeleteVery well explained, thank you!
ReplyDeleteTaking note of key levels to keep track and follow up.
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDeleteVery good analysis.
ReplyDeleteThanks for the analysis.
ReplyDelete