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 the AUD/USD. I’m going to look at the key area of support and resistance of the market.
So, the US Dollar continued to push to the upside, and the rally reached a point where we could see a bit of reversal.
Strength and weakness chart
The strength and weakness chart suggested looking for a reversal on the AU Dollar for quite a while now, but the price ignored that and continued to move to the upside.
What can we do? If I go down to the daily timeframe, you can see that the price is approaching this key zone once again, so it’s heading towards that 0.7 area.
We want the price to form a nice rejection in this area. At the moment, we have a Doji candle. I don’t think this market would move down straight away.
I’m actually looking for the four-hour rally. So, we’ve got this really nice upward move here. I’m expecting one more move out of AUD/USD into the 0.7 level, and for the price to form a bit of a double-top pattern.
I’m looking for the double-top play, or we can look for anything like a head and shoulders pattern. I’d
look for further downside as well. But, I want to see 0.7 retested before seeing a move to the downside.
At the moment, Aussie’s looking at that rejection. In line with that, we were looking at a potential GBP/AUD long.
You can see GBP/AUD is coming into an area of support, rejecting this area. So, we might be able to look for double-bottoms on our other Euro pairs as well.
Keep an eye on GBP/AUD. For me, this is the one where Aussie could lose a bit of value. I’m looking for another rally out of this market before looking for the reversal on this pair.
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