So after a bullish unemployment data, the Aussie hit a high resistance level and is dropping lower. There are some important observations to bear in mind.
1. This could be a possible Cup & Handle formation we could be looking at. (Represented by the blue channel lines sloping down). Its still early, but this pattern is worth keeping an eye on.
2. Price quickly dropped from what looks like a retracement to Nov'13 unemployment day price action.
3. Downside moves likely to be supported near 0.93 (apprx) followed by 0.91.
4. 0.91 region to be watched closely as we can 'expect' price to find support here and then rally back up... but that comes later (closer to NFP release)
5. Notice that Aussie seems to set its direction after NFP release. So this warns us that the moves Aussie is making could be fake and NFP could set the real direction for AUDUSD. That said, if NFP comes out bullish (incl. upward revision to last month's numbers) we can expect price action to head lower.
1. This could be a possible Cup & Handle formation we could be looking at. (Represented by the blue channel lines sloping down). Its still early, but this pattern is worth keeping an eye on.
2. Price quickly dropped from what looks like a retracement to Nov'13 unemployment day price action.
3. Downside moves likely to be supported near 0.93 (apprx) followed by 0.91.
4. 0.91 region to be watched closely as we can 'expect' price to find support here and then rally back up... but that comes later (closer to NFP release)
5. Notice that Aussie seems to set its direction after NFP release. So this warns us that the moves Aussie is making could be fake and NFP could set the real direction for AUDUSD. That said, if NFP comes out bullish (incl. upward revision to last month's numbers) we can expect price action to head lower.
