AUD Monthly and WeeklyWith the AUD trading above the Weekly 50% level this week, I would have liked to have seen further gains towards the Weekly highs.
The past 5-days doesn't give any clues on the early direction of the AUD in December.
Ideally I would still like to see the AUD move towards the 3-week highs:- resistance and then reverse down.
What we also notice is the shift in the monthly balance point in November from above (resistance) to matching in December.
If price is above this December BP, then the expectation is that over the next 4 weeks the AUD will consolidate in a tight trading band, which will result in Higher weekly closes followed by lower Weekly closes.
The trading range will probably remain supported between the December BP and the December's 50% level.
However, below the December balance point and the AUD can push down into December's lows.
AUD 3-day pattern
The past 5 days played out similar patterns of pushing down into the previous day's support and then closing higher.
That price action doesn't give any clues on which direction the AUD will go.
Basically the breakout of the 3-day range will let traders know which way the AUD will go in early December.
If there are any clues on the direction then maybe the Euro's price action is hinting a continuation downward early next week...... (read Below)
- All Daily forex reports are written before 9.00am Sydney Time, which is approximately 3 hours before Midnight GMT
