(by Eugene Voon)
Weekly Analysis – AUD Rally Paused
There is no major Australian economic news this coming week. On Monday 22nd June, RBA Governor Philip Lowe will be taking part in discussion panel regarding the Covid-19 pandemic and global economy. This however, should not affect AUD drastically. The tentative date for Australia’s Annual Budget release is on Monday 29th June. Although this piece of news is only for the following week, traders who intends to hold their positions over the weekend may consider reducing some risk.
AUDUSD Daily Chart
Early last week we saw AUDUSD make a quick retracement to the upside and continued back downwards in the later part of the week. Market showing us a bearish bias on this pair.
AUDUSD H4 Chart
On the H4, we saw that the sharp retracement occurred over a day or so and the bears eventually pushed price back down. The thing to note here is the bearish engulfing candle near the end of the final trading day. In the coming week we will see whether the reversal zone that had been pierced through becomes a new level of support or whether it breaks down and price moves lower.
AUDJPY Daily Chart
Last week we identified the head and shoulders forming on the AUDJPY. This week we saw price move up to the neckline and price continued downwards. This is a good sign of the bears coming into the market and pushing price lower. This week we will get to see if price gets supported at the 72.6 area.
GBPAUD Daily Chart
This week GBPAUD made another move to the downside towards our reversal zone. On Friday, we saw a slight retracement back up for price to form a pin bar. The pin bar is a signal for reversal and there may be a chance that this setup may not complete. However, we can still wait for price movement to determine whether to take a trade or not.
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