The pair ended the previous trading week with a modest loss around 0.7710, and bottoming on Friday at 0.7676.
The market has created a head & shoulders setup, while the key level of support was significantly broken out with a strong bearish momentum.
The Pair recovered as demand for the American currency receded ahead of the close, though modest gains in Wall Street Street limited the advance.
In fundamentals we have:
-The Reserve Bank of Australia will have a monetary policy meeting on Tuesday
-Higher stocks and easing government bond yields provided support to the pair
-Exposed to risk of falling further, and the slide could accelerate below 0.7675
Key Factors
-Potential Head & Shoulders Setup
-Looking strong on bearish as price broke out the key level of support with significant bearish momentum
-Still requires further confirmation from candlesticks for downside movements, as price retested previously broken out level with a strong bullish candlestick
Entry Conditions:
-Sell within or near zone when candlesticks forms a prominent downside confirmation
-Targeting for downside towards support at 7-week-low and risk managed above current resistance level
Other things to keep in mind
-Likely to drop without further candlesticks confirmation as price had already broke out a key level of support with significant bearish momentum and candlesticks
-Setup goes invalid if price finds support above 0.772
The market has created a head & shoulders setup, while the key level of support was significantly broken out with a strong bearish momentum.
The Pair recovered as demand for the American currency receded ahead of the close, though modest gains in Wall Street Street limited the advance.
In fundamentals we have:
-The Reserve Bank of Australia will have a monetary policy meeting on Tuesday
-Higher stocks and easing government bond yields provided support to the pair
-Exposed to risk of falling further, and the slide could accelerate below 0.7675
Key Factors
-Potential Head & Shoulders Setup
-Looking strong on bearish as price broke out the key level of support with significant bearish momentum
-Still requires further confirmation from candlesticks for downside movements, as price retested previously broken out level with a strong bullish candlestick
Entry Conditions:
-Sell within or near zone when candlesticks forms a prominent downside confirmation
-Targeting for downside towards support at 7-week-low and risk managed above current resistance level
Other things to keep in mind
-Likely to drop without further candlesticks confirmation as price had already broke out a key level of support with significant bearish momentum and candlesticks
-Setup goes invalid if price finds support above 0.772
Order cancelled
Setup gone invalid as price appears to have found support at 0.772
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.