AUD/USD: Are We Heading Lower?
Ian Copsey | Jul 07, 2014 03:43AM ET
AUD/USD
BIAS: Care required, but this does seem to require a correction higher before losses resume
Resistance: 0.9374-86 0.9405 0.9416 0.9430-40
Support: 0.9342 0.9328 0.9309 0.9292
MAIN ANALYSIS: A bearish reversal week seen. Thus, we should be heading lower in the larger picture. I find the structure rather difficult to be confident. However, my preference is that we should see a correction higher into the 0.9374 - 0.9405 area. If seen, note momentum conditions and preferably bearish reversal patterns. This should then see losses back below Thursday's 0.9328 low and down to the 0.9292 projection minimum - but more likely the 0.9244-62 area.
COUNTER ANALYSIS: A direct break above 0.9416 would risk a test of the 0.9430-40 area. Take care. Only break would suggest a test back to 0.9465-85 at least and of course then note the 0.9504 high.
MEDIUM TERM ANALYSIS:
7th July: With last week's key reversal week, it does confirm the 0.9504 high as the final high as suggested in last week's weekly report. Thus, while the 0.9374 - 0.9416 area caps we should see losses resume and down to 0.9244-62 an route to the 0.9208 low.
Only back above 0.9504 would resurrect the higher target at 0.9568.
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