A/U: TC bear signal gives 100 pips BUT strong level of support ahead.

December 1, 2014

The TC signal on the A/U has already peaked at 100 pips BUT there is  another strong layer of support just under current price. I noted in my w/e analysis how monthly Cloud support has been broken but AUD Bears need to pass yet another level to be confident of continuation.

A/U 4hr: this TC signal has given up to 100 pips:

AU4

A/U daily: trend line support just under current price:

AUdaily

A/U weekly: bullish wedge visible here:

AUweekly

A/U monthly: there is support under current price from the wedge trend line and the monthly 200 EMA. A breach of these though would suggest a trip to the 61.8% fib near the 0.80 level:

AUmonthly

USDX 4hr: the USD index is struggling at major resisatnce. Any repsect od this would support the A/U. However, a bullish USDX breakout would suggest bearish continuation for the A/U. 

USDX4

Summary: the A/U has been bearish and has already delivered up to 100 pips from a recent TC signal:

  • Watch for any reaction around this monthly 200 EMA and wedge trend line.
  • Any close and hold below the monthly 200 EMA and wedge trend line would suggest continuation to the 0.80 level, as per my w/e analysis.