The Australian Dollar (Aussie) has turned flat, and is now showing signs that it might be turning bearish. Let’s take a look at the technical developments in the AUD/USD, AUD/CAD and AUD/NZD pairs.
The AUD/USD has downside toward the 0.92-0.9210 lows from April and May. If there is pullback, we should look for resistance in the 0.9320 area, which was a former support for the price top in June and July. A break above 0.9380 would revive a bullish outlook, otherwise look for sellers to fade AUD/USD at least toward 0.92. The AUD/CAD is at the crossroad after a bullish breakout in July. This week starts with a test of this breakout, and if price can hold above 1.01, the bullish outlook might still be viable. Otherwise, we are medium-term sideways, with short-term bearish outlook toward the 1.00 handle. AUD/NZD is forming a double top near 2014’s rising channel resistance. If the double top is confirmed, we can anticipate a swing towards the 1.0820-1.0850 area. A break back above 1.10 however would invalidate the double top and suggest bullish continuation in the short-term.
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