AUDUSD has recently come into a support zone on the weekly timeframe. Will the weekly trend continue or will AUD remain weak?
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The AUDUSD chart was one to watch last Friday as price came into key support. However, since then the price has broken through the start of the zone and has fallen deeper. Although the market has continued lower, the trend on the weekly time frame still remains bullish. Price is now testing the candle bodies instead of the wicks which could be used as support for trend traders. If buyers were to step back into the market at these prices we would need to see some kind of bullish reversal patterns. These patterns could include the double bottom pattern or the inverse head and shoulders. Both of these trading patterns signal a bullish move is to come. If these patterns can be completed it can offer traders multiple opportunities in the market.
The price on the chart has traded through multiple technical levels and some observations included:
- Price has fallen to the candle bodies around 0.6790.
- The weekly trend is up, making higher highs.
- Fundamentals could prevent the market trading higher as the Fed will look to hike for longer due to recent strong data.
- A break below this support would see prices head to the lows of 0.6650.
- A reversal pattern forming could invite buyers back in at current support leading to another impulsive phase.
Have you watched our GOLD analysis? You can see it here.
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