Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
May’s extension, together with June and July’s follow-through has witnessed supply at 0.7029/0.6664, and intersecting long-term trendline resistance (1.0582), give way in recent trading. Technically, this could liberate buyers to as far north as 0.8303/0.8082, a supply zone that aligns closely with trendline resistance (prior support - 0.4776).
Despite this, the market’s primary trend points south, demonstrating a series of lower lows and lower highs since mid-2011.
Daily timeframe:
Partially altered from previous analysis -
Since ousting resistance at 0.6931, the level has been featured as support.
Wednesday’s action came within a stone’s throw away from reaching 0.7197 resistance, with Thursday delivering a bearish candle and snapping a four-day winning streak.
In terms of the RSI oscillator, the value recently exited overbought territory and is producing bearish divergence.
H4 timeframe:
As the Australian dollar travelled into negative territory against the buck Thursday, demand at 0.7102/0.7084 (prior supply) welcomed price action. Despite an early attempt at recovery, buyers appear feeble, emphasising the prospect of a breach to deeper waters today and approach to demand at 0.7015/0.7035. This is an interesting zone; it is marked as a point where a decision was made to break above neighbouring highs and supply at 0.7102/0.7084.
H1 timeframe:
0.7118/0.7146 initially put up some demand heading into the European open yesterday, though failed to sustain gains north of 0.7150 resistance.
The aforesaid demand gave way going into US trading, with price testing 0.71 support. This, as you can see, prompted a retest at 0.7118/0.7146, which held as supply and forced H1 candles sub 0.71 by the close.
Sellers south of 0.71 must contend with possible support derived from the 100-period simple moving average around 0.7081 and 0.7050 support.
Structures of Interest:
H1 closing under 0.71 indicates a bearish tone heading into Friday, bolstered by daily price recently denying levels ahead of resistance at 0.7197 and H4 buyers lacking enthusiasm out of 0.7102/0.7084.
Traders, however, are urged to keep tabs on monthly price, which suggests buyers still have the upper hand.
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
May’s extension, together with June and July’s follow-through has witnessed supply at 0.7029/0.6664, and intersecting long-term trendline resistance (1.0582), give way in recent trading. Technically, this could liberate buyers to as far north as 0.8303/0.8082, a supply zone that aligns closely with trendline resistance (prior support - 0.4776).
Despite this, the market’s primary trend points south, demonstrating a series of lower lows and lower highs since mid-2011.
Daily timeframe:
Partially altered from previous analysis -
Since ousting resistance at 0.6931, the level has been featured as support.
Wednesday’s action came within a stone’s throw away from reaching 0.7197 resistance, with Thursday delivering a bearish candle and snapping a four-day winning streak.
In terms of the RSI oscillator, the value recently exited overbought territory and is producing bearish divergence.
H4 timeframe:
As the Australian dollar travelled into negative territory against the buck Thursday, demand at 0.7102/0.7084 (prior supply) welcomed price action. Despite an early attempt at recovery, buyers appear feeble, emphasising the prospect of a breach to deeper waters today and approach to demand at 0.7015/0.7035. This is an interesting zone; it is marked as a point where a decision was made to break above neighbouring highs and supply at 0.7102/0.7084.
H1 timeframe:
0.7118/0.7146 initially put up some demand heading into the European open yesterday, though failed to sustain gains north of 0.7150 resistance.
The aforesaid demand gave way going into US trading, with price testing 0.71 support. This, as you can see, prompted a retest at 0.7118/0.7146, which held as supply and forced H1 candles sub 0.71 by the close.
Sellers south of 0.71 must contend with possible support derived from the 100-period simple moving average around 0.7081 and 0.7050 support.
Structures of Interest:
H1 closing under 0.71 indicates a bearish tone heading into Friday, bolstered by daily price recently denying levels ahead of resistance at 0.7197 and H4 buyers lacking enthusiasm out of 0.7102/0.7084.
Traders, however, are urged to keep tabs on monthly price, which suggests buyers still have the upper hand.