AUD/USD: Multi-year decline completed - Westpac

Eren Sengezer FXStreet

Tim Riddell, Resarch Analyst at Westpac, is assessing the price structures in the AUD/USD for 1Q 2017.

DAILY
- A standard, but deep, correction has formed from 0.7750. Daily momentum is relatively neutral, but rebounds lack impulse
- A close above 0.7700 is needed to re-instate the redefining of range resistance. A fall below 0.7580 would suggest that range resistance has been confirmed
WEEKLY
- Recent gains are seen as defining broad range resistance. A spike above 0.7830 could still occur, but would be seen as completing the defining of range resistance
- Although weekly momentum remains supportive, it appears to be “maturing”. This would affirm the bias for range trading and raise the potential for deep pullbacks
MONTHLY
- Patterns and long term momentum remain consistent with a base having formed into 2016 but also that a broad consolidation/trading range is forming
- AUD strength should be considered as temporary and defining consolidation resistance. Bias is still for deep pullbacks into 2H’17

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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