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2 October

By Ihab Maximous

Category: Technical Analysis

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AUDUSD targets 0.7500

On the daily chart, the Australian dollar versus U.S. dollar pair has been moving in an upside direction since the beginning of the year. The pair rose from 0.6800 to 0.8000 but there are more than a sign that support seeing correction in the coming few days.

The AUDUSD did a false breakout to the latest peak, as depicted on the previous daily chart, and this is considered the first sign of weakness in the bullish direction,

By looking at the monthly candlesticks, it is clear that the previous two months were referring to weakness in the pair, where last month we saw an engulfing candlestick that endorses the decline in the pair during this month’s trades.

The RSI momentum indicator is also moving to the downside, lowering the chances of seeing an upside move by the pair.

The AUDUSD is currently targeting 0.7515, which is the target of the false breakout (pattern 2B), and 0.7420 to complete the formation of a Shark Harmonic pattern. When the pair reaches the previously mentioned levels, we can consider activating a buy order.

Ihab Maximous

A stock market expert and technical analyst based on Elliott waves. He is the first to receive a certified Elliott wave Analyst certificate from Elliot Wave International website, a member of the American Association of Capital Market Experts. He is a member of the Egyptian Association of Analytical Analysts.