The Australian Dollar has broken out of the short term triangle pattern to the downside against the US Dollar. Due to that reason a full review of the situation on the pair’s charts has been done.
First of all it can be noted that the breakout to the downside could have been forecasted by examining the large scale situation and identifying a large scale ascending channel pattern. It is expected that a new medium term decline is about to occur. The next target for the pair would be the support cluster near the 0.7880 mark. However, before it will be reached the currency pair will face the various support levels below it.
First of all it can be noted that the breakout to the downside could have been forecasted by examining the large scale situation and identifying a large scale ascending channel pattern. It is expected that a new medium term decline is about to occur. The next target for the pair would be the support cluster near the 0.7880 mark. However, before it will be reached the currency pair will face the various support levels below it.
However, at two points the currency exchange rate has found support without an apparent reason. By connecting these two points a support line can be drawn, which is likely to play a role in the near future. Meanwhile, a parallel line can be drawn by using the August 1 high level.
In addition, a larger scale possible channel can be observed by connecting the late July and August 1 high levels and identifying the parallel line, by using the July 28 low level.
However, for a full on confirmation of the patterns to additional confirmation of trend lines are required. First would be the confirmation of the junior patterns upper trend line, and second would be the lower trend line of the dominant pattern.