This year is not very favorable for the Australian dollar and in fact since the beginning of February this year its value against USD has been falling until 17 May, when the exchange rate reached 0.6864.
Already in the analysis of the AUDUSD pair on 20 May I predicted that a growth correction is coming, which is slowly becoming a fact. If we look at chart D1 above, we will notice that the last daily candle is clearly bullish with increasing MACD, which would suggest a continuation of the bullish correction.
It becomes even more interesting when we look at chart H4.
This is where the “cup and handle” formation appeared – quite little known and not very common on the charts, although it can be extremely effective. Admittedly, an increase in the political and commercial tensions of the USA-China may at any time destroy my forecasts and coffee will be spilled out… but despite the risk I would bet on increases. The goal may be the nearest supply zone of 0.7020. Only a successful defeat of 0.6900 (the bottom of the cup’s handle) can negate the growth correction and signal return to declines.
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