The AUDUSD technical pattern remains stuck in a wider consolidation area but last week rally still looks corrective in nature and we can expect the AUDUSD to try to fill in the last week range. We can’t rule out the possibility of a false breakout above last week high 0.7356 before more downside to be seen. In the case of a breakout the rally should quickly fade off as we have resistance at 0.7365.
We can also spot bearish divergence between price and the stochastic indicator which is a warning for the bulls. To the downside we have the first level of support at 0.7220 but it’s unlikely that we can see a break below December low 0.7160 as we favor more consolidation once we return back inside the range.
The Australian economic calendar doesn’t has much to offer in terms of risk events with the exception of the Retail Sales figures scheduled to be released on Tuesday and based on the market consensus we should expect a flat reading of 0.5%. On Thursday the Fed chairman Janet Yellen is due to speak at the town hall meeting, in Washington DC. And her remarks are likely to affect all USD crosses.
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AUDUSD Weekly Forex Forecast – 9th to 13th Jan 2017 – Bearish