AUD/USD: Correction Higher Before Downtrend Resumes
Ian Copsey | Jul 20, 2015 14:07
AUD/USD INTRADAY CHART
BIAS: We should soon see a correction higher before the downtrend resumes
Resistance: 0.7385-90 0.7404 0.7430-36 0.7462
Support: 0.7350-55 0.7332 0.7311-24 0.7271-84
MAIN ANALYSIS: We are seeing the tail end of the losses back down to around the 0.7348 low (most likely 0.7350-55) for a correction. I doubt this correction will be too deep, and suggest the 0.7380-00 area should cap to see losses extend to around 0.7311-24, and followed by a correction back to the 0.7355-65 area again. This should cap for losses that are estimated to be in the 0.7290-10 area. This would prompt a deeper correction.
COUNTER ANALYSIS: Back above 0.7400-05 would concern and perhaps suggest a more complicated corrective pattern. Above 0.7436 would frustrate although, if there is any explanation, I may have misjudged the recovery and still I doubt the 0.7462-88 area will be broken. As a last resort, the 0.7511-23 area is a deeper daily retracement area.
MEDIUM TERM ANALYSIS:
17th July: It seems we have seen the irregular triangle complete and therefore, we should now look for losses. This could be a little tricky because the higher degree targets are quite wide. In the meantime, we should see losses to 0.7311-24 for a correction and can judge the next lower following the correction...
Only back above 0.7500-35 would imply we need a deeper retracement higher.
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