Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
- The AUD/USD has found support after declining to start the year.
- Last week, we had a swing from just above 0.98 to just above parity, where the market rejected the rally. Then, we saw a decline back to 0.9850 to wrap up the week.
- To start the week, we confirmed a bottom above 0.9850, and the market is bullish in the near-term.
- The first level of resistance is the 1.0 level, but if the market accelerates, it can go towards the area between 50% and 61.8% retracement. This is also the swing projection, and extended retracement between 150.0%-161.8%.
- This 2-upswing correction to 61.8% is known as a Gartley, and suggests a bearish attempt should follow. On a break back below 1.0, a decline should first target 0.9900 in the near-term, but a break below that makes the case stronger for bearish continuation.
- The bearish continuation scenario targets 0.9750.
Will the Aussie resume its uptrend or continue this intermediate term bearish correction to its 2011 rally? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.