Weekly
• Last Candlesticks pattern: Long white candlestick
• Time of formation: 10 Jul 2017
• Trend bias: Up
Daily
• Last Candlesticks pattern: Long white candlestick
• Time of formation: 18 Jul 2017
• Trend bias: Up
As aussie has risen again after finding renewed buying interest at 0.7867 and previous resistance at 0.7963 was penetrated, suggesting early fall from 0.8066 top has possibly ended at 0.7808 and upside bias is seen for gain to 0.8000, however, break of said resistance at 0.8066 is needed to confirm recent upmove has resumed and extend the medium term erratic rise from 0.6827 to 0.8163 resistance, then 0.8200 but loss of near term upward momentum should limit upside and reckon another previous resistance at 0.8295 would hold.
On the downside, whilst pullback to the Kijun-Sen (now at 0.7937) cannot be ruled out, reckon 0.7905 support would limit downside and bring another rise later. Below support at 0.7867 would defer and prolong consolidation, risk weakness to 0.7830 but said support at 0.7808 should hold from here. Only below said support at 0.7808 would signal the corrective fall from 0.8066 temporary top is still in progress for retracement of recent upmove to 0.7760 (61.8% Fibonacci retracement of 0.7571-0.8066) but reckon downside would be limited to previous resistance at 0.7712 and 0.7670-75 would hold from here, bring another rebound later.
Recommendation: Buy at 0.7920 for 0.8120 with stop below 0.7820.
On the weekly chart, as aussie found renewed buying interest just above the Tenkan-Sen and rebounded from 0.7808, suggesting the pullback from 0.8066 has possibly ended there and consolidation with upside bias is seen for gain to 0.8000, then retest of said resistance at 0.8066, however, break there is needed to confirm recent erratic rise from 0.6827 low has resumed and extend gain to previous resistance at 0.8163, then 0.8250 but near term overbought condition should limit upside to another previous resistance at 0.8295 and price should falter below 0.8390-00, bring retreat later.
On the downside, expect pullback to be limited to 0.7905 and bring another rise later. Only below support at 0.7867 would defer and risk another test of said support at 0.7808, a daily close below there would revive near term bearishness for retracement of recent rise to 0.7750, however, a sustained breach below previous resistance at 0.7712 is needed to signal a temporary top has been formed at 0.8066, bring test of the Kijun-Sen (now at 0.7698), then towards 0.7600-10 but support at 0.7571 should contain weakness.
