The Australian Dollar continues extending its gains pushing prices towards 0.8000. Yesterday’s candle on the daily chart closed at 0.7975 after reaching a high of 0.7998 indicating some sort of early resistance at 0.8000. Focus for today now lies at price 0.8000 where we may see a re-test of a psychological resistance price. With no major data release from Australia for the coming week, we can expect prices to continue rising under the assumption of a weakening Dollar.
Observing the H4 chart, candles now lie at the top of the symmetrical triangle where traders may await for a shorting entry should candles show signs of resistance. Additionally, stochastic oscillator remains in the overbought region and now seeks to hook below 79, indicating a weaker buying action in the market. Should candle now close below 0.7970, it is possible to engage in a shorting position to the bottom of the triangle. However, the triangle starts to converge and we may see a possible breakout soon.
Focusing on the hourly chart, candles were observed to break out of the descending triangle but now finds resistance at 0.8000. Prices are expected to fall towards the intermediate support at 0.7950. If candles break below 0.7950, traders should hold their shorting positions to the bottom of the symmetrical triangle as observed on the H4 chart.
|Bearish towards 0.7950||0.7880||0.7910||0.7950||0.8000||0.8045||0.8130|