Filed Under:
Forex pairs in this Article » USD/JPY
FXStreet (Barcelona) - Goncalo Moreira, FXStreet Technical Analyst notes that being outright bullish on every intraday parameter, the Aussie is showing a significant correction of the broader downtrend against most other currencies.

Key Quotes

“With 1.6% for the day, it's the best performer so far and promises a structural change in the bigger charts as well.With the exception of the yen which is currently suffering a short squeeze on the back of risk aversion, the Australian dollar performed constructively against its major counterparts on weekly timeframes as well, so the significance of the AUD may stay elevated during the rest of the week.”

“Another technical catalyst that determines the validity of the aforementioned technical implication is the piercing line candlestick pattern on the weekly close. This bottom reversal pattern emerged last Friday from an multi-year low, -not from a significant support level-, but it nevertheless presaged the current rally.”

“The specter of the impulsive movement from the Jan low at 0.8650 warns of a stronger rally attempt but still the Aussie has to eradicate the 0.89 figure where it sits right now. A possible reaction may be a dip to the 4-hour 200 SMA and a renewed upward drift from there. There are trading positions reported by dedicated FXStreet contributors to sell the pair around the 0.89 handle.”

“Looking to the Confluence Meter, the setup for AUD/USD suggests an increased risk that the short term corrective phase will lead to an attempt to explore higher price levels. The lack of upside obstacles and therefore possible supply clusters reinforces the idea that a intermediate bottom is in place.”
comments powered by Disqus