Daily Forex Update: AUD/USD

By: Dima Chernovolov

AUD/USD continues to fall inside the Clear Falling Wedge pattern which was previously identified by Autochartist on the 30-minute charts. Autochartist rates the Quality of this Falling Wedge at the 6 bar level – which is the result of the low Initial Trend (1 bar), above-average Uniformity (6 bars), and maximum Clarity (10 bars). AUD/USD is expected to continue to fall inside this Falling Wedge – in line with the technical analysis shown below.

As can be seen from the daily AUD/USD chart below, this Falling Wedge follows the earlier breakout of the key support area lying between the pivotal support level 0.7440 (which reversed the price sharply in April) and the 50% Fibonacci correction of the sharp upward impulse from December. This price area is acting as resistance zone after it was broken. The proximity of this resistance zone increases the probability AUD/USD will continue to fall inside this Falling Wedge.

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