AUDUSD: Australian Dollar Melts During the Asian Session
AUSDUSD: We saw the pair rally back into the resistance highs this week to finally have a trade set up worthy of conviction! After rejecting and stalling at the 0.7440 level once again, the pair followed through on Thursday with some extremely bearish price action closing the day entirely engulfing prior days price and closing with so much momentum it was only a matter of time before the continuation was to occur.
A daily break of the inner C.T.L meant only one thing, that the pattern structure, that had kept the pair so restricted was in danger of breaking and therefore providing us with a set up the would lead us to 0.7330.
This level has now also been wiped out by the aggressive moves in the last 38 hours as the pair now seeks to find new lows.
The daily and weekly closure on the pair will be intriguing tonight, as this dictates future price action and whether or not the pair could reach its desired downside target of 0.7225 and 0.7200 respectively. If we can maintain below the wedged shaped structure and 0.7330 there is every chance the pair has a further 100 pips to fall. Keep an eye out for how we close by the end of the day.