AUDUSD Rests Cautiously At A Major key Level Ahead of Q1 GDP
We did, in fact, see the surge of AUD as the price went and reached the 0.76500 level on Monday and has since stalled at this level.
As price looks to be at a critical junction of 0.76500 we will either see a continuation to the upside or a rejection and further weakness is currency pair. In the early hours of Wednesday Morning, the Q1 GDP figures were released coming in at 1% rather than the forecast 0.8%. The market reacted with a short bullish burst recovering Tuesdays loss's and spiking a new high at 0.7673 before retreating slightly.
I now favour a bearish momentum to overtake for the remainder of the week as the stars align from a technical standpoint. The favoured retracement Fibonacci region has been achieved along with a retest of the key resistance zone of 0.76500. The current series of Lower-Highs is also holding weight on the overall structure of the pair. As long as the pair remains below 0.7700 I will be looking for reversal formation to occur on higher timeframes to hold the strongest probability of a reversal.