AUDUSD Weekly Outlook - respect countertrend potential

AUDUSD Weekly Outlook - respect countertrend potential

2 November 2015, 18:11
Sergey Golubev
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W1 price is on primary bearish with secondary ranging within the following key support/resistance levels:

  • 0.7381 resistance level, and
  • 0.6907 support level.

Absolute Strength indicator is estimating the ranging condition, and Trend Strength indicator is evaluating the market condition as possible bear market rally to be started in the near future.

  • Chinkou Span line is located below the price indicating the ranging condition by direction.
  • Ichimoku cloud together with 'reversal' Sonkou Span line is far above the price which makes the bullish reversal to be unlikely in this year.
  • "The AUD/USD rally failed 3 weeks ago (we were looking towards .7530-.7625) but bears aren’t in the clear here either. The week’s low registered at a long term median line (albeit downward sloping). Countertrend advances have materialized off of this line time and time again so respect potential for something other than another breakdown."

If price will break 0.6907 support level so the primary bearish will be continuing.
If price will break 0.7381 resistance level so the bear market rally will be started within the primary bearish market condition.
If not so the price will be ranging within the levels.

Trend:

W1 - ranging bearish
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