From Investor to Scalper is a cycle of analysis in which we take one financial instrument and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M30.
As a result of the declines going on since August 2011, AUDUSD has beaten the upward trend line. After overcoming this support, the declines did not last too long and from October 2015 the market moved calmly north, fluctuating around the broken line and re-testing it from the bottom (as resistance).
Looking at the weekly chart, we notice that these increases form a formation of an upward wedge whose upper limit is the previously overcome trend line.
Check out the FX88 offer now and take advantage of the competitive spreads you are offered by this broker
Considering the recent rejection of the upper limit of this formation, in the near future we could expect continuation of the declines and re-testing its lower limit.
However, before this happens, from a technical point of view, we could expect a deepening of the upward correction lasting since last Friday. These increases could reach the local resistance coinciding with the 38.2% or even 50% Fibonacci correction from the earlier decreases.
Potential increases may also be supported by the fact that the price is still in the local growth channel, and only break out from this formation could be considered as an attempt to change the market’s attitude.
FX88 is a broker regulated by CySEC. The broker provides competitive spreads and prices of currency pairs, metal and CFD. In addition, it provides the latest trading tools that enable investors to take advantage of the amazing opportunities on the market.