The Aussie is once again butting against a major 3 1/2 year bear trend line and looks ready to either rock or roll (over!) at this resistance zone. This region also marks a potential ‘neck line’ for a weekly chart ‘Inverse H&S’ pattern worth up to 1,000 pips so this trend line region is worth monitoring!
AUD/USD 4hr: butting up against this 3 1/2 bear trend line again. Watch for any make or break of this resistance zone that evolves with increased momentum. However, keep in mind that this is a monthly chart-based trend line and so a monthly candle break really needs to be seen here to confirm this pattern but, it’s gotta start somewhere!
AUD/USD weekly: note the extra trend line action coming from the Inverse H&S here and this pattern is worth around 1,000 pips as being the measured height from the ‘Head’ to the ‘neck line’. This trend line is dove-tailing in with the 3 1/2 bear trend line though for added confluence:
AUD/USD monthly: this trend line is just one on the way to a potential test of the monthly chart’s major bear trend line that has been in place since 2011. Bring on a test of this though I say…especially as I head OS for a month on Saturday 🙂
By the way, I’m open to some possible divergence between the Aussie and Kiwi as per the AUD/NZD chart too. Not predicting at all…just watching and evaluating!