AUDUSD:- Are We Due A Recovery?
AUDUSD:- as we approach the final trading month of the year it will be pivotal on how this month closes out to set up the prevailing trend for 2019.
This year we have seen an impressive 10-month bear trend swinging beautifully to the downside revisiting many of the previous higher low swings.
A trend that previously took 2 and half years to established got whipped out in the space of 10 months, before finding its bottom at 0.70500 support region.
November saw a recovery in price, the first substantial bullish run since January 2018 and may lead us into a bullish bias for the up and coming weeks and months ahead.
The current market price has gapped over 60 pips on Sunday evening and recovered slightly during Monday's close. However, there remains distance between last weeks body and the open price of the current market condition that has yet to be fulfilled. I would expect the price to revisit the support region of 0.7330 before continuing its uptrend.
Although the higher time frames do suggest bullish pressure is looming, if we take into account the daily wave structure we have reached a crucial level of resistance just above at 0.7400 and a new high has been formed. I would certainly favour a slight recovery in price before buying the Australian Dollar once again.