Tuesday, June 28, 2011

#AUDUSD Outlook

The Aussie has a short term bullish outlook which soon enough will most-probably become full reversal pattern.

The monthly charts shows price action inside a very steep angle bearish wedge formation. Price has reached a high on the second day of June. If next month we don't take out this years high, than the formation will be complete and price will seek lower grounds. I expect AUDUSD to be bearish for a few years just as gold.

The weekly chart also paints a very angled bearish wedge coupled with a MACD bear divergence (confirmed by RSI) with an initial MINIMUM target of 0.9704. A second target can be seen on RSI and will most-likely be @ MINIMUM 0.8066. However, if we measure the measured objective targets for both wedges, we should expect an even bigger drop.

The daily charts shows that price broke the lower trend line of a triangle-pennant like formation. As in other pairs (EURO and Swissey), the Aussie left an acceleration gap below. So this gap shall be covered sooner than later.

 The 60 min chart. denotes price inside a descending channel formation. Price could make a retracement to the blue boxed area on another touch of that trend line. That will most likely happen in the vicinity of the 38.2 fib retracement area. If this occurs, expect price to go much lower.



The weekly chart and the wedge: price should look for the lower trend line and break it. Initial MINIMUM target is marked by the white dotted line. However, I expect price to head much lower.



The daily chart inside the wedge formation. A line steep as this one should not be able to survive or much longer. The triangle (red) was taken out earlier this month.




The 60 min. chart: Price inside a descending channel formation. A pullback towards the upper trend line is very likely. A short position could be stablished inside the blue box area.

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