audusd
- Daily: The AUD/USD showed a strong reversal signal with this week’s price action. The 0.860 area supported the pair, and even though it broken below key supports, this action was apparently just a clear-out.
- The rally suggests continuing price action within the context of intermediate-term consolidation channel, which is slightly down-sloping. A test of resistance should be confluent to the 78.6% retracement which is near the 0.92 level.
- The stochastic is showing strength and Friday’s price action although strongly bearish, does not invalidate the bullish outlook in the short-term.
- 4H: The 4H time-frame shows a healthy uptrend developing in the short-term.
- If the upsloping trendline cracks however, you might want to lean to the bearish outlook. But if the decline is rejected from going below the previous consolidation range at 0.87, then lean on the bullish outlook with a short-term target at 0.90, and short-intermediate term target at 0.92.
Fan Yang
Currency Analyst
Commodity Trading Advisor
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. CMS will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is acting as a counterparty to its clients’ transactions and as a result, CMS’ interests may be in conflict with its clients. Since CMS acts as the buyer or seller in the transaction one should carefully evaluate any trade recommendation provided by CMS or any of its solicitors. Foreign currency trading involves a substantial risk of loss and may not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.