I am more satisfied that we should begin to see an acceleration of losses and that 0.950 was in deed a market top.
Last week closed just above the 93c level after seeing in intraday low of 0.9275 last week. This was an important level for the bulls to defend as a weekly close below this level could have created a sell-signal within itself. The past 3 sessions have edged higher but lack any bullish momentum. When you consider that Friday's (3 candles ago) was during NFP then it should be noted that the Aussie failed to properly capitalise on the Greenback weakness.
As the A$ floats higher I suspect we will remain below the 0.935-37 zone as bearish swing traders seek to enter the market.
The previous post highlights the weekly charts and my call for a top at 0.95 and today's post highlight the 'a-b-c' move seen at the start of July on the Daily chart. The fact this is more than likely corrective (and we now trade beneath the lows of the a-b-c pattern) suggests we should be seeking a bearish continuation below 0.9275.
- Interim targets is now 0.920 below 0.937
- A break abvove 0.937 invalideas the near-term analysis
- A break below 0.920 confirms the bearish top on the weekly chart and for a resumption of the weekly bearish trend.
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