Aussie looking very overbought!
Thanks to a recent bout of buying which managed to smash through the 0.77 handle, the commodity currency is now seen trading in a beautiful spot! From the weekly chart, the Aussie is seen touching gloves with a weekly trendline resistance taken from the high 0.8163, followed closely by a weekly supply zone logged in at 0.7849-0.7752 (bolstered by yet another weekly trendline resistance stretched from the high 0.7835). Additionally, we can also see that the weekly trendline resistance (0.8163) is positioned nearby a daily Quasimodo resistance penciled in at 0.7734 and a daily resistance at 0.7720.
Our suggestions: The 0.7752/0.7720 higher-timeframe zone, coupled with a nice-looking H4 AB=CD (black arrows) 161.8% approach at 0.7728, is likely sufficient enough to bounce price. However, with Aussie employment data just around the corner, one may want to wait for a H4 bear candle to print before looking to pull the trigger. The next downside target from this angle is 0.77.
Data points to consider: Aussie employment data at 12.30am. US housing data, US jobless claims and the Philly Fed manufacturing index all scheduled for release at 1.30pm GMT.
Our suggestions: The 0.7752/0.7720 higher-timeframe zone, coupled with a nice-looking H4 AB=CD (black arrows) 161.8% approach at 0.7728, is likely sufficient enough to bounce price. However, with Aussie employment data just around the corner, one may want to wait for a H4 bear candle to print before looking to pull the trigger. The next downside target from this angle is 0.77.
Data points to consider: Aussie employment data at 12.30am. US housing data, US jobless claims and the Philly Fed manufacturing index all scheduled for release at 1.30pm GMT.
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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.