The AUDUSD technical pattern has moved from consolidation into a very tight range zone. But small ranges are always followed by price expansion and the tighter the range the more aggressive the break will be. The stochastic indicator and the AUDUSD price have moved in the opposite directions over the past two weeks creating a massive bearish divergence that warns a reversal is the most probable outcome. To the upside 0.7696 should act as resistance while the first major level of support comes in at 0.7600. A break below the support level will see a momentum acceleration to the downside and open the door for a much deeper correction. We have a soft Australian economic calendar that doesn’t have any major risk event that can disrupt the volatility, except the speech held by the RBA Governor Lowe. On Thursday Governor Lowe is due to speak at the Australia-Canada Economic Leadership Forum, in Sydney and on Friday we have Governor Lowe is due to testify before the House of Representatives Standing Committee on Economics, in Sydney. Previous AUDUSD Weekly Forex Forecast

AUDUSD Weekly Forex Forecast - 20th to 24th Feb 2017 - Bearish