AUD/USD: Technical weekly outlook and review.
Weekly Timeframe: Over the past three weeks the Aussie Dollar looks as though it has just been pushed off of a cliff! The southbound move that was seen last week saw the weekly candle closing a few pips off its lows (0.87648), within an obvious-looking weekly demand area at 0.86591-0.88247, and as a result, buying interest should really be expected to come into the market sometime this week.
Daily Timeframe: Friday’s trading action saw price trade into the 0.87556 level (daily Quasimodo support). A slight bullish reaction was seen just before the market closed for the week (0.87648). Be that as it may, the only way to find out if this buying activity was legit, and not just traders liquidating some of their short positions, would be a follow-through to the upside early this week. Let’s take a look on at the 4hr timeframe price action to see if we can see any clues as to if prices will indeed rally.
4hr Timeframe: Some interesting price action has developed on the 4hr timeframe. There was clearly buying interest on Friday around the 4hr demand area at 0.87293-0.87578, it’s what happened after this, that was interesting. Check out the two wicks at 0.88019/0.87912, these were likely consumption wicks indicating a move higher is likely going to follow (effectively clearing out sellers). Ideally what we’d like to see is a small fakeout below the low 0.87467 early sometime this week, and from there on price will likely rally up to at least the 4hr support flip level at 0.88248 (sell orders seen just around the 0.88181 area).
With this recent price action, coupled with price currently located within higher-timeframe demand (Weekly: 0.86591-0.88247, Daily: 0.87556), we could be seeing the beginnings of a high-probability long trade forming.
Buy/sell levels:
• Buy orders: N/A – Awaiting a fakeout before any buy order can be initiated (Predicative stop-loss orders seen at: N/A).
• Sell orders: 0.88181 (Predicative stop-loss orders seen at: 0.88367).
Daily Timeframe: Friday’s trading action saw price trade into the 0.87556 level (daily Quasimodo support). A slight bullish reaction was seen just before the market closed for the week (0.87648). Be that as it may, the only way to find out if this buying activity was legit, and not just traders liquidating some of their short positions, would be a follow-through to the upside early this week. Let’s take a look on at the 4hr timeframe price action to see if we can see any clues as to if prices will indeed rally.
4hr Timeframe: Some interesting price action has developed on the 4hr timeframe. There was clearly buying interest on Friday around the 4hr demand area at 0.87293-0.87578, it’s what happened after this, that was interesting. Check out the two wicks at 0.88019/0.87912, these were likely consumption wicks indicating a move higher is likely going to follow (effectively clearing out sellers). Ideally what we’d like to see is a small fakeout below the low 0.87467 early sometime this week, and from there on price will likely rally up to at least the 4hr support flip level at 0.88248 (sell orders seen just around the 0.88181 area).
With this recent price action, coupled with price currently located within higher-timeframe demand (Weekly: 0.86591-0.88247, Daily: 0.87556), we could be seeing the beginnings of a high-probability long trade forming.
Buy/sell levels:
• Buy orders: N/A – Awaiting a fakeout before any buy order can be initiated (Predicative stop-loss orders seen at: N/A).
• Sell orders: 0.88181 (Predicative stop-loss orders seen at: 0.88367).
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