The Australian Dollar was the weakest currency of last week offering us some short opportunities.
AUDUSD has broken a key swing trading level and could re-test before seeing another move lower.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to take a look at AUD/USD as the price is finally starting to break to the downside.
We looked at the strength and weakness chart at the start of the week. We then identified that AUD/USD could be a market of interest for us because the AU Dollar was the biggest loser of last week. However, the US Dollar was one of the biggest gainers last week, with plus three.
We were looking at AUD/USD’s potential to start breaking to the downside and what we’ve got at the moment is price in that consolidation level, a very high level of volume through this level, around 0.7630. The price is starting to reject that and we’ve started to see that projection to the downside. We were looking for a couple closes below this level. This suggests that we could be heading down to our next level of support, around 7490. I’m still looking for some further downside here on AUD/USD.
If I go into the four-hour timeframe, we can see that the market is starting to break lower. We can see that we’re starting to get those closes that we were looking for, but this is still in the very early stages of the closes. It’s still the start of the US session, but if this candlestick on the four-hour timeframe can close like this or even more bearish, then we do have a confirmed break of this level. We can then start looking for the pullback rejection trade and a retest of this major resistance for further downside on AUD/USD.
AUD/USD projections are looking quite good so far. Let’s see if we can get that four-hour close. We’re looking for targets at 7490, and hopefully, we see this one pull through. Cheers!
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