AUD/USD – Retest of the wedge breakout

Ian Coleman FXStreet

Technical

Monthly: We have broken the large Expanding Wedge formation to the downside. The whole move higher from the 2016 low (0.6827) has been and volatile, common in corrective formations. We posted a bullish Hammer for the month of January. Reverse trend line resistance is located at 0.7270.

Weekly: Broke the wedge formation to the downside and reached the measured move target of 0.6827. A bearish Elliott Wave count now looks to be complete with a move to the 261.8% extension of 0.6836. Price action has been mixed for the last 6 weeks.

Daily: Broken out of the wedge formation to the downside. Reverse trend line resistance is seen at 0.7172. Bespoke resistance is located at 0.7158-63. With the intraday chart close to an exhaustion count, we look for rallies to be limited. The wedge has a measured move target of 0.6995.

Action: We look to Sell at 0.7158
Stop: 0.7210
Targets: 0.7000

AUD/USD Current Trading Positions

Sell 82%

Buy 18%

Avg Sell Price 0.7198

Avg Buy Price 0.7106

Liquidity Distribution

Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold pushes back above $5,000

The daily chart shows spot Gold in a parabolic uptrend that accelerated sharply from the $4,600 area in late January, printing a record high at $5,598.25 before a violent reversal erased nearly $1,000 in value during the final days of the month.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.