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AUD/USD: Should Be Seeing Losses

Published 10/19/2015, 12:54 AM
Updated 07/09/2023, 06:31 AM

AUD/USD INTRADAY CHART

AUD/USD Hourly Chart

BIAS: This should extend losses with hourly and 4-hour momentum bearish

Resistance: 0.7275-80 0.7320-25 0.7345 0.7362-81
Support: 0.7222-40 0.7198 0.7164 0.7120-35

MAIN ANALYSIS: The upside development looks corrective and therefore we should be seeing losses now. Overall, this should suggest a move back below 0.7198 and also 0.7164 to reach 0.7120-35 at a minimum and potentially 0.7080-85. From 0.7140 and lower, observe for bullish reversal indications. Currently, hourly momentum is suggesting the potential for a bullish divergence to develop, but we'll have to judge this as the move develops. Thus, this still needs care and with the final low not really clear, we'll need to look for other indications to support a reversal higher.

COUNTER ANALYSIS: To see this move higher, we'll need a break above both 0.7362 and 0.7381. If seen, then we should see gains, but currently the target is uncertain. However, I suspect it will be above 0.7439-51…

MEDIUM TERM ANALYSIS:
13th October: The continued gains have breached key levels that suggest that I called the Wave [iii] low too early. This now appears to have been at 0.6908. Thus, the absolute ideal retracement is at 0.9439, but we shall need to exercise care in identifying bearish reversal indications, which are not really evident at the moment. Once this high is in place, we should see losses resume.

15th October: I see potential for a move to 0.9439 but could even be higher given the general dollar weakness...

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