The Australian dollar has initially tried to rally during the week but rolled over and reached below the 0.77 handle. More importantly, we have a massive uptrend line just below that extends to late 2015. I believe that we could have some value hunting in this area, but if we were to break down below that uptrend line, that is a major change of attitude in this pair. I think that the next week is going to be crucial, showing whether the uptrend line can hold or not. I do find it interesting that we are about to test it for the 4th time over the last month. That would show a major breakdown in confidence in this pair, and I think we could go much lower.
If we can break above the top of the range for the past couple of weeks, that would be exactly what this market needs to see to build up enough confidence to continue the up-trending channel. Otherwise, this could be a major change in direction. I will of course keep you up-to-date here at FX Empire as to what I’m going to do, but I suspect that the close of this coming week candle will be crucial as to where we go next. I suspect that we are in the precipice of a large move for those who are patient enough to wait for the proper signal and take advantage of it when it makes itself known.
AUD/USD Video 23.04.18
This article was originally posted on FX Empire
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