GBP/AUD is the biggest mover today. At the time of writing, it’s down -128 pips or -0.70%.
As we expected here, the fall from 1.8726 did extend lower and met 38.2% retracement of 1.7282 to 1.8726 at 1.8174. But out of our expectation, the decline is much more powerful than anticipated and 55 day EMA is taken out without much hesitation.
For now, further decline is expected as long as 1.8284 minor resistance holds. Deeper fall should be seen to 61.8% retracement at 1.7863. Though, break of 1.8284 will suggest short term bottoming and bring stronger rebound.
In the bigger picture, there is no clear sign of trend reversal in GBP/AUD yet, except bearish divergence condition in daily MACD, and the fact that it just missed 61.8% projection of 1.6161 to 1.8507 from 1.7282 at 1.8732. That is, we can’t tell whether the corrective up trend from 2016 low at 1.5626 has completed yet. So, we’ll look for bottoming signal again below 1.7863 fibonacci level.
