Aussie Breaking Out Of A Triangle, Searching For Support
The Aussie broke to the downside this week, falling below the triangle support line which later turned into resistance near 0.65. We've observed some very nice accelerating price action moving lower into wave C, which should be comprised of five subwaves. There's likely at least one more push downward before the pair may stabilize, possibly around 0.64330. A recovery back above 0.6480 would indicate that the pair is already bottoming out, and we are definitely watching for this type of reversal in the upcoming weeks. This is because moves out of triangles are typically final within the higher degree sequence, and this triangle is clearly visible on our 4-hour timeframe.
Trade well,
Grega
On the date of publication, Gregor Horvat did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.