Weekly
   •   Last Candlesticks pattern: Shooting doji
   •   Time of formation: 20 Feb 2017
   •   Trend bias: Sideways
Daily
   •   Last Candlesticks pattern: Bearish engulfing pattern
   •   Time of formation: 21 Mar 2017
   •   Trend bias: Near term down


Aussie has maintained a firm undertone after staging a strong rebound from 0.7372 earlier this month, adding credence to our view that a temporary low has been formed at 0.7329 last month, hence consolidation with upside bias remains for the rebound from there to extend gain to another previous resistance at 0.7611, having said that, aussie needs to break this level to signal the fall from 0.7750 top has ended and bring subsequent rise towards resistance at 0.7680 but price should falter below chart resistance at 0.7750.
On the downside, whilst initial pullback to 0.7500 cannot be ruled out, reckon the Tenkan-Sen (now at 0.7470) would limit downside and bring another rise later. Below 0.7415-20 would defer and risk weakness towards said support at 0.7372 which is likely to hold from here. Only below said support at 0.7372 would revive bearishness and suggest the rebound from 0.7329 has ended, bring retest of this level, break there would extend recent fall from 0.7750 top to 0.7300 and possibly 0.7250-60 but reckon downside would be limited to 0.7200-10 and price should stay well above indicated previous chart support at 0.7158.

Recommendation: Buy at 0.7475 for 0.7675 with stop below 0.7375.


On the weekly chart, last week’s strong rebound did form a white candlestick, adding credence to our view that low has been formed at 0.7329, hence consolidation with upside bias remains for further gain towards previous resistance at 0.7611, however, break there is needed to signal the fall from 0.7750 has ended at 0.7329, bring subsequent rise towards resistance at 0.7680, having said that, price should falter below said resistance at 0.7750.
On the downside, although pullback to 0.7500 cannot be ruled out, reckon the Tenkan-Sen (now at 0.7470) would limit downside and bring another rebound. A weekly close below the Kijun-Sen (now at 0.7454) would risk weakness to 0.7400 but only break of said support at 0.7372 would suggest the rebound from 0.7329 has ended and revive bearishness for retest of this level. A break there would extend recent decline from 0.7750 to 0.7290-00 and possibly towards 0.7230, however, downside should be limited to 0.7200 and price should stay well above previous support at 0.7158, risk from there is seen for a rebound to take place later.Â
