Weekly Chart
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Fibonacci Fan Arcs have been impressively successful in timing the latest corrections, including the current one, which makes us believe late January/early February 2017 could mark the next wave north around the 1.5000 Australian dollar mark. The 20-year low will be the next major level to watch at 1.4500, meaning that the aforementioned surge could also stem from this level instead. The most recent overstep of the daily-chart upper Bollinger Band, did skew some of the risk on the upside for one moment, but the rate was locked back by the 55-day SMA and cloud resistance shortly after. We attribute the violation to ultra-tight bands following a period of exceptionally low volatility, which makes us consider it as a false breakout.
Hourly Chart
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A Hikkake pattern suggests that the pair could end the day in the green zone, possibly above the 55-day SMA at 1.6676 it has been attempting. This confirms our guess that the rate will hesitate to take on the next wave south.
To highlight out stance even more, we turn to the rising wedge on the hourly chart pointing towards the trend-line denoted by the Pitchfork, which confirms our rising-then-falling scenario.
Volatility is bound to at least somewhat shake GBP/AUD as markets await high impact Australian data on Thursday. Unemployment change and the unemployment rate come out at 12:30 GMT, with the UK's retail sales number following at 9:30 GMT.
Aggregate Technical Indicators
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