Monday, 15 August 2016

AUD/USD: Is This the End of the Move to the Upside?




I am examining the AUD/USD daily and weekly time-frames and I am considering whether this might be the end of the move to the upside. The pair has been moving to the upside since the end of May this year in a very choppy manner, and last Thursday it formed a very clear doji candlestick on the daily time-frame. What is more, AUD/USD has formed a hammer candlestick and a shooting star candlestick on the weekly time-frame for the past two weeks there is definitely a signal that there is an impending move to the downside. If that signal is valid the pair’s first target will likely be around 0.7570, and a breakout below that level would lead to a further drop towards 0.7420.

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