The AUD/USD technical pattern is shifting from bullish to bearish as for the first time since we have been trapped inside the current range the bearish momentum is gaining big traction. However, last Friday’s sell-off has left behind pockets of liquidity voids that require being filled and in this regard earlier in the week we can expect a partial fill, thus a retracement back inside the Friday range, but below 0.7590 resistance level, before more weakness to be seen. Only a premature break of the 0.7500 big psychological figures will be the catalyst for the bearish momentum to accelerate to the downside. The first level of support comes at 0.7400 and only a weekly close below this figure can signal the resurrection of the bigger bearish cycle started since the summer of 2012. Tuesday the RBA assistant governor Kent Speaks is due to speak at the Bloomberg breakfast address, in Sydney which can have an impact on the Aussie. However, the high risk events will come from China data and potentially can have a much bigger impact on the AUD/USD. China Industrial production is expected to come flat at 6%, while for the Retail Sales the general consensus is for a soft reading of 10.2%. Thursday the Australian employment data is the highlight of the week. The Unemployment rate is expected to come strong at 5.7%, while the economist expects a smaller jobs gain of 15k lower than the previous reading

AUDUSD Weekly Forex Forecast - 12th to 16th Sept 2016 - BEARISH