The 0.75 handle looks tasty for a long.
Weekly gain/loss: -1.28%
Weekly closing price: 0.7563
The commodity currency boarded the pain train last week, dropping almost 100 pips. What this recent downside move did accomplish, however, was bring weekly price down to within shouting distance of a particularly interesting level. Merging with a weekly channel support extended from the low 0.6827, we have a nice-looking weekly AB=CD (see black arrows) 161.8% Fib ext. point at 0.7496 that also aligns with a 50.0% value at 0.7475 taken from the high 0.8125.
In conjunction with weekly price, Friday’s daily candle ripped its way through a daily trendline support taken from the low 0.7159. With daily structure showing little active demand to the left of current price, this could suggest that we may see a move down to daily support found at 0.7505 sometime this week.
Over on the H4 timeframe, support at 0.7576 was taken out during the early hours of Friday. Further losses were seen until the unit struck a session low of 0.7536 going into the US open. Price managed to trim losses from this point and bring the Aussie back up to just ahead of the recently broken support-turned resistance at 0.7576.
Suggestions: After looking through each timeframe, here’s what we have noted so far:
• Selling from the H4 resistance at 0.7576 could be an option, targeting the 0.75 handle. Waiting for H4 price to print a full or near-full-bodied bearish candle is advised here since the unit could just as easily be drawn to the 0.76 handle.
• Buying from the 0.75 region is a high-probability setup, in our opinion. Not only is there a weekly channel support intersecting with this line, there’s also a weekly AB=CD 161.8% ext. point at 0.7496 and a daily support at 0.7505. To give the trade room to breathe, we would look to place stops 45-50 pips below 0.75.
Data points to consider: No high-impacting news events on the docket.
Levels to watch/live orders:
• Buys: 0.75 (stop loss: 0.7455).
• Sells: 0.7576 region [waiting for a reasonably sized H4 bearish candle to form – preferably a full or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s wick).
Weekly closing price: 0.7563
The commodity currency boarded the pain train last week, dropping almost 100 pips. What this recent downside move did accomplish, however, was bring weekly price down to within shouting distance of a particularly interesting level. Merging with a weekly channel support extended from the low 0.6827, we have a nice-looking weekly AB=CD (see black arrows) 161.8% Fib ext. point at 0.7496 that also aligns with a 50.0% value at 0.7475 taken from the high 0.8125.
In conjunction with weekly price, Friday’s daily candle ripped its way through a daily trendline support taken from the low 0.7159. With daily structure showing little active demand to the left of current price, this could suggest that we may see a move down to daily support found at 0.7505 sometime this week.
Over on the H4 timeframe, support at 0.7576 was taken out during the early hours of Friday. Further losses were seen until the unit struck a session low of 0.7536 going into the US open. Price managed to trim losses from this point and bring the Aussie back up to just ahead of the recently broken support-turned resistance at 0.7576.
Suggestions: After looking through each timeframe, here’s what we have noted so far:
• Selling from the H4 resistance at 0.7576 could be an option, targeting the 0.75 handle. Waiting for H4 price to print a full or near-full-bodied bearish candle is advised here since the unit could just as easily be drawn to the 0.76 handle.
• Buying from the 0.75 region is a high-probability setup, in our opinion. Not only is there a weekly channel support intersecting with this line, there’s also a weekly AB=CD 161.8% ext. point at 0.7496 and a daily support at 0.7505. To give the trade room to breathe, we would look to place stops 45-50 pips below 0.75.
Data points to consider: No high-impacting news events on the docket.
Levels to watch/live orders:
• Buys: 0.75 (stop loss: 0.7455).
• Sells: 0.7576 region [waiting for a reasonably sized H4 bearish candle to form – preferably a full or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s wick).
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