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
Aussie only rose to as high as 0.8125 before retreating, a shooting star was formed on the daily chart (followed by a black candlestick), suggesting consolidation below this level would be seen and pullback towards support at 0.7867-71 is likely, however, a daily close below there is needed to signal a temporary top has been formed at 0.8125, bring retracement of recent rise to another previous support at 0.7808 which is likely to hold on first testing.
On the upside, expect recovery to be limited to 0.8050-60 and said resistance should remain intact, bring another retreat later. Above said resistance at 0.8125 would extend the medium term erratic rise from 0.6827 to 0.8163 resistance, however, loss of near term upward momentum should limit upside to 0.8200 and reckon 0.8260-65 (61.8% projection of 0.7329-0.8066 measuring from 0.7808) would hold, price should falter well below another previous resistance at 0.8295, bring retreat later.
Recommendation: Sell at 0.8060 for 0.7860 with stop above 0.8130
On the weekly chart, although aussie extended recent rise to 0.8125 earlier this month, the subsequent retreat suggests consolidation below this level would be seen and pullback to 0.7865-70 cannot be ruled out, however, break of support at 0.7808 is needed to signal a temporary top is formed, bring retracement of recent rise to 0.7727 (50% Fibonacci retracement of 0.7329-0.8125 as well as current level of the Kijun-Sen), however, reckon downside would be limited to 0.7675-80 and 0.7630-35 (61.8% Fibonacci retracement) would hold, bring rebound later.
On the upside, whilst recovery to 0.8050-60 cannot be ruled out, as long as said resistance at 0.8125 holds, prospect of another retreat remains, above said resistance at 0.8125 would extend the erratic rise from 0.6827 low to previous resistance at 0.8163, then 0.8200 but near term overbought condition should limit upside to 0.8260-65 (61.8% projection of 0.7329-0.8066 measuring from 0.7808) and another previous resistance at 0.8295 should hold, price should falter well below 0.8390-00, bring retreat later.
