AUDUSD pair since the beginning of the year moves to the north creating an upward correction after earlier declines. The price creates formation of a triangle, and from a technical point of view, both the triangle as well as its dynamic (or rather the lack of it) and the fact that it is only an upward correction suggests a bearish breakout and continuation of declines.
What would suggest for the pro-growth scenario is the fact that now the market breaks line of the downtrend and if only this week ends above, then as likely pro-growth scenario can occur, although to realize it, it would be prior necessary to overcome the immediate resistance zone and establishment of a new, higher high.
Looking at the H1 chart, we see strong appreciation of the Australian dollar today, which was caused by publication of inflation rate of consumer CPI for the third quarter by Australian Bureau of Statistics at 2:30 a.m. , the readings proved to be not only better than the previous but also better than optimistic prognosis.
Actually we observe drops and even though they are definitely less dynamic than early morning impulse, it’s hard to state clearly that they are merely a correction. In the near future we expect a re-test of the defeated in night resistance zone (this time as a support), the rejection could be a signal for continuation of growth in the area of 0.7725.
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