AUD Week and Daily chartAUD bounced off MAY 50% levels once again and now pushing up into MAY's highs this Month.
As pointed out the Premium Trader, the Quarterly timeframe has forward 'drops', which is a forewarning pattern of weaker prices. However, Quarterly timeframe is 3-months in length and any weaker pattern can happen any time during these current 3-months, with a few confirming patterns along the way.
This week on the AUD saw the first confirming SELL pattern with Thursday's break of the Weekly 50% level, price moved back down into the MAY 50% level:- support.
The 2nd part of the Weaker pattern was based on Thursday's price action and an 'UP' day:- test Weekly 50% level on Thursday, and Reject down on Friday......
AUD 3-day ChartAs we can see Thursday closed back above the Weeky 50% level, which already puts the 'Reject' pattern at a failure, and if price isn't trading below the 5-day 50% level on Friday, then there is no 2nd confirming pattern for confirming Weakness.
Friday breakout in the 3-day pattern and rally back towards the Weekly highs...
Next Week:- AUD pushing up into MAy's highs, and at this stage it's pushing up towards the Quarterly April-June highs.
Short-term:- Expectation price will push higher on Monday and come back and test the 5-day 50% level. If prices are going to continue higher, it should bounce of the 5-day 50% level and be trading around it's highs on Tuesday....
Note: There is still the 'Drop' in the Quarterly timeframe and this will be hanging over it's head and i'll be looking for any 'Sell' patterns in the market using the 3-day high pattern
