AUD/USD: Rejection off the projected target at 0.73

Cycles & Levels: The weekly looks much more constructive for higher levels after breaking the 2018 descending trendline. On the daily, the price has reverted back down at the projected 100% fib target, which is also confluent with the 0.73 round number. The daily cycle is up nonetheless, but the maturity of the move suggests some downward pressure is possible, with the retest of a violated descending trendline the next focus. On the hourly, a double top and the breakout of the ascending trendline are signs that the market is shifting its attention towards lower levels. This has also caused the structure to start faltering, with an intraday down-cycle formed.

Correlations & Volumes: Thursday’s POC printed 0.7288, which means that any recovery back toward the level may offer an opportunity to engage in sell-side action with some tight stop above the 0.73 area. The correlations (gold, dxy, Chinese yuan, yield spread) are not negating the near-term follow-through selling dynamics. If anything, it justifies them.