© Dukascopy Bank SA
Pattern created by the Aussie against the US Dollar implies a narrowing trading range. As soon a the pattern is completed, we can expect a jump in the value of the Australian Dollar.
However, in the near term a drop is suggested to be the most appropriate scenario for this currency pair. After consolidating below 0.71, the it will target the last week's low at 0.7015. After that the pattern's trend-line is going to be within bears' reach. Daily and weekly technical studies support the sell-off. This idea is reinforced by a dense resistance area above the spot. However, SWFX traders assume the Aussie will finally resume growing as three out of four open positions are bullish today.
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