AUD Weekly and 3-day pattern 7:30amExpectation of further weakness this week based on the Monthly rejection pattern didn't occur until US trading hours.
Monday:- breakout of Sunday's 3-day filter and expectation of a push higher, but first to test support.
This played out pushing higher during GMT trading hours, but then reversing down from Monday's highs.
Tuesday:- expectation of further weakness down into Tuesday's lows.
Ideal pattern would be to see some support during Asian trading hours, swing back into the 50% level and then continue down into Tuesday's lows.
Note:- it will depend on the next couple of hours, but any break and close below Monday's lows, will be a breakout, which I would look for a 2-day pattern of weakness down into Wednesday's lows.
EURO Weekly and 3-day patternMonday:- resistance around the 3-day filter pushing down into support and rallying higher.
But then the same pattern occured in all USD spreads during the US timezone, weakness which matches the Monthly 50% level rejection pattern.
Tuesday:-
I would like to see the Euro swing back into the blue filter and continue down on Tuesday.This might not occur because the Weekly 50% level could resist price and the Euro could simply following a trending pattern down into Tuesday's lows.
Note: At this stage the view is for currencies to move down towards their Weekly lows
- All Daily forex reports are written before 9.00am Sydney Time, which is approximately 3 hours before Midnight GMT
