The Australian Dollar starts to lose its bullish momentum after candles show minimal bullish movements as the trading week comes to an end. Candles now show signs of resistance at the initial support at 0.77, where we may see the pair reverse and go on the bearish run for the coming week. Traders who had engaged in a trade this week should protect part of their profits or if not, take partial or even full profits as we may see a reversal of the bullish run.
Observing the H4 chart, candles seem to be resisted just below 0.7721, indicating a possible end of the bullish run for the past week. A retracement is expected and we may see prices fall towards 0.7647 before we see a continuation of the bullish run. A ranging market may be observed between 0.7647 and 0.7721 for the coming week.
Focusing on the hourly chart, a head and shoulders pattern was observed. However, candles have yet to break below the upward sloping trend line and candles may actually find support and continue on the uptrend. For intraday traders looking to short the pair, they should wait for a confirmation of a clear break below the trend line and the 55 EMA before engaging in a shorting entry with take-profit level at 0.7647.
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Trend Direction
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S3
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S2
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S1
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R1
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R2
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R3
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| Bullish if break above 0.7720 | 0.7559 | 0.7600 | 0.7647 | 0.7720 | 0.7770 | 0.7900 |
