The Australian Dollar continues on the fifth consecutive day of losses against the Dollar with yesterday’s candle closing at 0.7605 on the daily chart. Bearish momentum of the pair remains relatively strong but with candles nearing the previous low at 0.7559, it is possible for traders to look out for longing opportunities should candles find support at 0.76.
Observing the H4 chart, candles were observed to retrace after touching 0.7594 and now touches the resistance at 0.7659. The spike in prices was due to the release of a positive Chinese Manufacturing PMI data but the pair continues to remain resisted. The range of prices between 0.7659 and 0.7594 remains as a critical region for the pair where we may see a ranging market for the next few days before the release of Friday’s U.S Non-Farm Employment Change data. However should candles break above 0.7659 due to speculations on a weak Dollar, the next resistance lies at 0.7700 where candles may once again re-test the upward sloping trend line. The highlighted region is where traders could possibly look out for shorting opportunities should candles hold above 0.7659 today.
Focusing on the hourly chart, candles have started to show signs of resistance at 0.7659 where the current candle forms a relatively long shadow just after touching 0.7659. Current candle has yet to show a confirmation of a resistance yet and traders should be patient and await for a confirmation before engaging in a shorting trade.
|Bearish/ Ranging between 0.7659 and 0.7594||0.7500||0.7570||0.7594||0.7659||0.7770||0.7850|