Technical market insight: EUR/USD and AUD/USD
|EUR/USD:
Technical observations out of the monthly chart reveal large-scale support at $1.1816-1.1299, though prime support rests at $1.1473-1.1583 which happens to share chart space with a 100% Fib projection at $1.1613. This echoes a technically bullish picture, placing the retracement slide on the daily timeframe from late July tops at $1.1909ish in question. North of $1.1909, buy-stops could fuel moves to prime resistance at $1.2115-1.1990, a place active sellers may reside.
Shorter-term flow has H4 shaking hands with demand at $1.1783-1.1810, following a three-day long decline from $1.1939-1.1902 supply. The chart has labelled this area as brittle, as prime support inhabits the $1.1764-1.1776 neighbourhood and sell-stops beneath the aforementioned demand could help fuel willing $1.1764-1.1776 bids. In conjunction with the H4, the H1 chart centres its attention on $1.18. Although $1.18 joins hands with a 61.8% Fib retracement and a 1.618% Fib projection at $1.1797, the Quasimodo resistance-turned support at $1.1775 (which converges with prime H4 support at $1.1764-1.1776) is positioned to welcome any $1.18 whipsaw.
AUD/USD:
According to the weekly timeframe, August dipped a toe in prime support at $0.6968-0.7242—an area encouraging a two-week bullish phase. Despite this week turning lower, chart studies point to $0.7849-0.7599 as a potential upside objective. Consequently, further upside could be in the offing. Interestingly, from the daily timeframe, prime resistance made an entrance at $0.7506-0.7474 and recently hit its support target at $0.7286-0.7355. This could see longer-term movement attempt to scale through stacked supply between $0.7617 and $0.7408 to $0.7621: a Quasimodo support-turned resistance.
Against the backdrop of the bigger picture, the H4 scale, as expected, took hold of the lower side of the decision point from $0.7395-0.7410. Stacked demand is close by between $0.7282 and $0.7343, though prime support rests at $0.7236-0.7266. Lower on the curve, the H1 timeframe shows what appears feeble demand at $0.7331-0.7350, open to a possible whipsaw into prime support from $0.7310-0.7322, which is joined by a decision point at $0.7307-0.7324. A $0.7331-0.7350 whipsaw to $0.7310-0.7322 would be in line with the daily timeframe ‘hitting target’ and possibly reversing, as well as monthly direction.
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