AUDUSD Aussie continues to weaken

It was expected that the Aussie would begin a surge against the Greenback after the pair reached the monthly pivot point and the lower boundary of a medium-scale triangle. However, the surge began later and, by the end of Thursday’s trading session, the AUD/USD pair had gained 60 base points.

The weekly PP proved that it has enough support to force the exchange rate upwards. The surge was stopped by the monthly S1 at 0.7855.

As for near future, the pair is likely to remain trading inside the medium-scale triangle until a breakout occurs to either direction.

Comentarios:

The Australian Dollar maintained a stable position against the US Dollar on Friday, thus trading within range the whole session.
After hitting the 50.00% retracement level during the early hours of today session, the currency pair started to decline. This retracement can be measured by connecting the low at 0.7791 and the high at 0.7989.

Everything being equal, the exchange rate is likely to continue moving south until it re-tests the lower boundary of a large-scale triangle.

Comentarios:

Upside momentum prevailed yesterday and thus sent the Australian Dollar rallying against the US Dollar. As a result, the pair was able to breach the 55-hour simple moving average.

By the end of European trading session on Friday, the exchange rate remained relatively calm and was gradually moving north. However, the 55-hour SMA is restricting the AUD/USD pair for making such moves.
As for near future, the Aussie is likely to remain bearish. This bearish movement could be stopped by the monthly S2 at 0.7712.