Currency analyst

AUD/USD: convergence helped Aussie

On the daily AUD/USD chart convergence area of 0.757-0.7585 has managed to stop the attack of the bears. Close to the next resistance at 0.7676-0.7688 the pair may form point 3 of 1-2-3 pattern. The combination of 1-2-3 and "Three Indians" pattern is a powerful reversal formation. On the other hand, successful test of resistance will increase the risk of the uptrend resumption.

On H1 AUD/USD formed descending trend channel that means that the bears have the initiative. Inability of the pair to settle above 0.7628-0.7641 will make Australian dollar to slide towards 0.7573. If the buyers manage to take out the next resistance, chances of increase towards 0.768, 0.772 and 0.775 will significantly increase. 


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