We have been tracking this ascending trend line on the AUDUSD for several weeks. The first mention was on September 14, just days after the bearish pin bar formed at 0.8065 resistance.
Then on Thursday of last week, the pair closed the session below trend line support that extends from the June low. This confirmed the break and established a potential selling opportunity from the 0.7980 area.
Friday reached a high of 0.7986 before sellers stepped in to force a session close of 0.7957. So far it seems that former trend line support is acting as new resistance.
As long as the price remains below 0.8000 on a daily closing basis (5 pm EST), I will maintain a short-term bearish outlook. Only a daily close back above this area would negate that outlook.
With last week’s breakdown, the AUDUSD looks ready for a pullback. How low sellers will take the pair is anyone’s guess, but the August low at 0.7820 is the first target. A daily close below that would expose the February and March highs at 0.7730.
Note that 0.7730 is also the 50% retracement when measuring from the May low to the current September high. You’ll also notice that 0.7820 is the 38.2% Fibonacci retracement of the same range.
Source: bit.ly/2fiju0P
Then on Thursday of last week, the pair closed the session below trend line support that extends from the June low. This confirmed the break and established a potential selling opportunity from the 0.7980 area.
Friday reached a high of 0.7986 before sellers stepped in to force a session close of 0.7957. So far it seems that former trend line support is acting as new resistance.
As long as the price remains below 0.8000 on a daily closing basis (5 pm EST), I will maintain a short-term bearish outlook. Only a daily close back above this area would negate that outlook.
With last week’s breakdown, the AUDUSD looks ready for a pullback. How low sellers will take the pair is anyone’s guess, but the August low at 0.7820 is the first target. A daily close below that would expose the February and March highs at 0.7730.
Note that 0.7730 is also the 50% retracement when measuring from the May low to the current September high. You’ll also notice that 0.7820 is the 38.2% Fibonacci retracement of the same range.
Source: bit.ly/2fiju0P
