Sasha Singh
1
All posts from Sasha Singh
Sasha Singh in Sasha Singh,

AUDUSD : Extending Losses, Key Support at .9242 in Focus

AUDUSD : 4 Hour Chart

AUDUSD broke below the rising channel trend after the strong US data which fueled expectations among investors that the Fed will start increasing interest rates sooner than earlier scheduled. The pair extended declines by breaking the rising support trend line of the channel which was showing an uptrend. It found support at .9277 which earlier acted as resistance for the pair. After finding support at .9277 and rising the pair is currently testing the resistance at .9296 which was earlier acting as support for the pair. 

AUDUSD : Daily Chart

On the daily chart, there seems to be a falling wedge pattern which gives a bullish trend. So according to it the pair should surge from the resistance trend line of the wedge. So the pair might continue to decline but it might either find support at .9242 or from the falling support trend line. However if the pair continues to decline below these support levels the wedge pattern will fade away and the falling channel trend would be in focus as another support trend line would be acting as support. It will confirm the bearish trend when it will break below the 200 day SMA. Also let's don't forget the release of FOMC meeting minutes at 2 PM EDT today which will also further give guidance about the direction of the pair.