Weekly Analysis – AUD (by Eugene Voon)
There will be no major news this week for the Australian dollar. Monday, 8th June is the Queen’s Birthday thus it will be a bank holiday. Any major movements in price will likely be due to news events related to the other half of each pair.
AUDUSD Daily Chart
Over the past week, we saw price spike up and close above the reversal zone that had been identified. It is still possible to take a short position as the trade is still valid. Price is approaching the major resistance at PtX of the Bat Pattern.
At the close of Friday, we can see that the upper wick on the candle. This indicates resistance as sellers pushed price back down slightly. Traders who have not yet gotten in on the Bearish Bat may wish to wait for further confirmation of a change in direction before taking a short position. Alternatively, aggressive traders could look to short at market open while maintaining a tight stop loss.
AUDJPY Daily Chart
Likewise, the AUDJPY saw a sharp spike to complete the Bearish Bat. Unlike the AUDUSD pair, the AUDJPY does not show weakness at the close of last week. Traders should look out for signs of weakness if they wish to take a short. The chart is showing us that it might be wise to stay out and observe further how this price movement pans out at this resistance level.
GBPAUD Daily Chart
Over the course of last week, we saw the GBPAUD progress further down towards the reversal zone of the Bullish Bat. Traders will still have to wait and observe as price moves lower to complete at the reversal area highlighted. It would be nice if price starts to form a wedge in the coming week to signal a change in direction. A good sign of the market running out of sellers would be a Wedge Pattern at the Bat Pattern PRZ.
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