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AUDUSD – Tweezer Tops and below 0.7665

Market Analysis

AUDUSD, H1 and H4

The dollar is trading mostly firmer, the main exception being the case against the yen. The narrow trade-weighted USD index(DXY) is presently showing a 0.2% gain, at 94.61, earlier logging an intraday high at 94.64, which is 1 pip shy of Friday’s peak. EURUSD is off by a similar magnitude, presently seeing stable trading just under 1.1650.The dollar is also firmer against the commodity bloc currencies and sterling, presently registering 0.9% gain in the case versus the latter. USDJPY, in contrast, is lower, with Japanese currency knocking the buck into second position in the best performer league table today. Overall directional bias is limited, given the uncertainties about tax reform in the U.S.

AUDUSD, today, has ebbed back under 0.7665, traded below 20 and 50-period MA in the 4-hour chart, while it is for 6th consecutive day below the 200-DAY MA. Meanwhile, the formation of Tweezer Top in the 4-hour chart earlier, suggested that further weakness follows, with possible corrective turns in lower time-frames. Downside pull reveals as well from the negative MACD and Stochastics stable at 20 since morning, while a break below recent low and immediate support level at 0.7626, suggest that the sellers are gaining ground.

Hence an entry was taken at 0.7648, with  near-term Target (H1) at 0.7635, and  higher-term Targets (H4) at 0.7613. If Target 2 confirms then this will triggered our Daily Target at 0.7570. Support is at 0.7665  and at 0.7695 respectively. Only a break above the 200-Day MA at 0.7700 could indicate that bulls are back in control of the particular pair.

 

 

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Andria Pichidi

Market Analyst

HotForex

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