Article originally published on innerfx.com and republished here with permission
Quote of the day:“Do not wait for extraordinary circumstances to do good; try to use ordinary situations.” ~ Jean Paul Richter
Good morning. Equity markets continued the recovery on Friday, therefore AUD crosses are trading higher – AUDUSD testing resistance into former support zone. The Swiss franc continues to retreat against most counterparts not showing notable signs of strength yet. Let’s take a quick look at some charts:
Buying a few days ago at “cheap” levels as the bottom was suggested by the highlighted reversal candle was a good idea. Interim resistance is now under pressure and I think it’s best to look for new buying opportunities on strength, if the upside barrier will be breached.
Support near 1.38 was breached last week and it seems there’s more downside ahead. Minor rallies will probably be sold, so I am looking for new selling opportunities on potential pullbacks to 1.3800-1.3850. Next support level is at 1.3500