spotfxtrader

So much for our expectation of resistance at .9805, as the rejection of the lows has carried the market back to .9894 and the long term ‘mean channel’ on the four hour chart.

So far the .9724 low which formed on the 16th, leaves a higher bottom in place and the market appears to be in some consolidation pattern below the 1.0182 high. The longer term outlook remains positive for the aussie, but the pattern of activity below that high appears to signal that the market has entered a longer  term period of corrective activity which should see lots of overlap of previous swings and could see the market ranging between 1.00 and the .95 area.

Above, we expect resistance at .9982 and 1.0070; while below we expect to find support at .9805,  .9717,  .9629, and .9540.