© Dukascopy Bank SA
Similarly to the previous pair, aussie-greenback has a very high magnitude rating, but the pairs quality rating is much higher. Despite the fact that short term technicals give almost unanimous bearish signal, in our opinion, we should put more weight on the medium and long term technicals. Pair seems much more likely to peak above the pattern's boundaries and then return back while maintaining its bearish stance. Daily PP seems unlikely to pullback the pair, but 90 cent area, which capped three runs, could do exactly the same once more and push the pair back in to the pattern's boundaries. If not, 20-day SMA around 91 cents is another option.
© Dukascopy Bank SA