AUD/USD – Weekly outlook 24 Oct – 28 Oct
Last week saw the bullish momentum we have seen in the Aussie so far this month slowing down with the market chopping in a 260pip range. The market managed to just about stay under the 1.04 level mentioned in last week’s outlook. The outlook on the Dailies remains the same as last week. Should we see the recent bullish momentum resume a break above the 1.04 area could lead to further gains up to 1.06 and beyond. However it is still possible to see a ‘bounce’ of the 1.04 area which could potentially lead to a fall back to parity.
On the weekly charts we saw the market break and close out of the upper channel line mentioned in last week’s outlook. Its significant to note that last week’s candle has closed as a bullish pin suggesting further gains could be seen in the coming day’s/week’s.
With the strong upper resistance on the daily charts and the bullish pin bar on the weekly the market is giving conflicting signals. At this moment it would be advisable to stay patient and ‘wait and see’ what the pair finally decides to do. Should we see any bearish price action rejection signals at the resistance areas mentioned above we will look to short this market back down to lower levels.
