The pair continues to range between 1.1200 and 1.1225 as direction is sought. With a bearish H&S in play, a capture of 1.1200, will see the bear’s target 1.1175, 1.1150 and 1.1125. While a capture of 1.1225 by bulls, may suggest some more upside as bulls look to negate the H&S by capturing 1.1250.
The pair is back to test the major trend line with 1.2950 the level to capture if either side wants to secure a majority and move price in their favour. Bulls will look to control the area with targets at 1.2975, 1.3000 and 1.3025 while bears will look to capture 1.2950 as a stepping stone to 1.2925, 1.2900 and 1.2875.
AUDUSD bears broke free and are currently testing the 0.7600 support level, 100 pips from the weeks high. We expect a good battle here with a possible retrace to 0.7625, 0.7650 and perhaps 0.7700. Provided that 0.7700 is not breached, bears will enjoy selling at bargain prices as the trend changes to bearish and they look to test lower with 0.7575, 0.7550 and 0.7525 in their scopes.
Bears managed to break south of the wedge and are currently testing 1325 after having broken decisively below the 50 and 100 EMA`s, effectively turning them into resistance which we expect they will leverage as they look to test 1320, 1315 and 1310. However, with oscillators in oversold levels we might see some upside should bulls manage to hold 1325 and we see 1330, 1335 and 1340 back on the cards.