Following a bullish RBA minutes, the commodity currency aggressively bounced from the 0.78 region, which fused beautifully with a H4 trendline support etched from the high 0.7635. Prices advanced over 100 pips from here, eventually putting in a high of 0.7942 and closing the day beyond the 0.79 handle. This has, as far as we can see, cleared the path north for further buying up to the large 0.80 handle. What this recent move also accomplished was a clean break through weekly supply at 0.7849-0.7752. A continuation move from here could see the Aussie shake hands with a strong weekly resistance base at 0.8075.
Although we have weekly and H4 action echoing bullish tones right now, it might be worth noting that daily price is seen crossing swords with a channel resistance pegged from a high of 0.7732. Should this line hold steady, the next area of support can be seen at 0.7819: a recently broken Quasimodo line.
Our suggestions: While a great deal of traders will be eyeing the 0.79 handle for longs today, daily sellers could force price beyond this number and challenge the H4 support at 0.7870. As of this moment, we’re not satisfied with current structure, and feel trading it would be too much of a risk. Therefore, our plan of action is too wait for today’s segment to play out and then reassess structure going into tomorrow’s opening.
Data points to consider: US Housing data at 1.30pm GMT+1.
Although we have weekly and H4 action echoing bullish tones right now, it might be worth noting that daily price is seen crossing swords with a channel resistance pegged from a high of 0.7732. Should this line hold steady, the next area of support can be seen at 0.7819: a recently broken Quasimodo line.
Our suggestions: While a great deal of traders will be eyeing the 0.79 handle for longs today, daily sellers could force price beyond this number and challenge the H4 support at 0.7870. As of this moment, we’re not satisfied with current structure, and feel trading it would be too much of a risk. Therefore, our plan of action is too wait for today’s segment to play out and then reassess structure going into tomorrow’s opening.
Data points to consider: US Housing data at 1.30pm GMT+1.
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