Weekly
• Last Candlesticks pattern: Long white candlestick
• Time of formation: 10 Jul 2017
• Trend bias: Sideways
Daily
• Last Candlesticks pattern: Long white candlestick
• Time of formation: 18 Jul 2017
• Trend bias: Up
As aussie found decent demand at 0.7571 earlier this month and has rallied since, price broke above indicated previous resistance at 0.7835, reinforcing our bullish view that medium term erratic rise from 0.6827 has resumed and upside bias remains for this move to extend headway to psychological resistance at 0.8000, break there would encourage for subsequent rise to 0.8090-00 but near term overbought condition should prevent sharp move beyond 0.8150 and price should falter below 0.8200.
On the downside, whilst initial pullback to 0.7875-80 cannot be ruled out, reckon the Tenkan-Sen (now at 0.7833) would limit downside and the Kijun-Sen (now at 0.7763) should hold, bring another upmove later. A daily close below the Kijun-Sen would dampen this bullish view and suggest a temporary top is possibly formed, risk test of previous resistance at 0.7712 but break there is needed to add credence to this view.
Recommendation: Buy at 0.7840 for 0.8040 with stop below 0.7740.
On the weekly chart, aussie has surged after brief retreat to 0.7571 and the subsequent rally above previous resistance at 0.7835 formed a long white candlestick, signaling the erratic rise from 0.6827 low is still in progress, hence bullishness remains for this move to extend headway to psychological resistance at 0.8000, then 0.8090-00, however, near term overbought condition would limit upside to previous resistance at 0.8163 and price should falter well below resistance at 0.8295, bring retreat later.
On the downside, although pullback to 0.7875 is likely, reckon downside would be limited to previous resistance at 0.7835 (now support) and bring another rise later. Below 0.7785-90 would bring pullback towards previous resistance at 0.7712, break there would suggest top is possibly formed, bring test of the Tenkan-Sen (now at 0.7681) but break of the Kijun-Sen (now at 0.7660) is needed to provide confirmation, bring further fall towards said support at 0.7571 which should remain intact.
