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AUDUSD Double Top Formation Below Ichimoku


Dec.06.2016

AUDUSD Double Top Formation Below Ichimoku

Australia saw its first GDP contraction in five years and Invest Divas discovered an AUDUSD double top formation below Ichimoku cloud first thing during Wednesday's Sydney session. While USD seems to be exhausted on the forex dance floor, we may have trading opportunities in Mr. Aussie. So, let's take an IDDA approach to develop a trading strategy you, my lovely divas.

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Technical Analysis | AUDUSD Double Top Formation Below Ichimoku

Daily Chart: The AUD/USD pair made its way below the Ichimoku cloud in November. Now the prevailing cloud is heading down, the Tenkan line has crossed below the Kijun line, and the Chiko span is also below the cloud.

The pair breifly entertained the 50% Fibonacci retracement level after the massive drops and then started hanging out around the 38% Fibonacci at 0.7450, which happens to be a strong pivot zone.

 

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All these longer-term bearish indications aside, we also are eyeing an AUDUSD double top formation ... starting TODAY!

The neckline is at 0.7381 and the completion is at (take a guess) 50% Fibonacci. Surprise!

AUDUSD Double Top Formation Below Ichimoku Cloud - Daily Chart Technical Analysis AUDUSD Double Top Formation Below Ichimoku Cloud - Daily Chart Technical Analysis

Monthly Chart:  The monthly Ichimoku cloud is also thick and downward-moving, with the pair below it, trapped inside a triangle. Unable to break above the resistance of 0.7690, AUD/USD seems like its heading back towards the lower band of this major triangle. Some may call that an "angled neckline" but we don't judge them :)

AUDUSD Double Top Formation Below Ichimoku Cloud - Monthly Chart Technical Analysis AUDUSD Double Top Formation Below Ichimoku Cloud - Monthly Chart Technical Analysis

Fundamentals | USDCAD Supported by Ichimoku

Australia's Side: Hopes weren’t high for the GDP of the Land Down Under. However, the Aussies managed to disappoint the market participants even more. The numbers were lower than even the gloomiest forecasts. GDP shrank by 0.5% compared to the second quarter, much worse than the 0.1% slide expected.

 

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To be fair, the RBA call this out before it even happened. In a statement on Tuesday it said that “the economy is continuing its transition following the mining investment boom” and that “some slowing in the year-ended growth rate is likely, before it picks up again.

 

US Side: US economic data got Ms. USA another boost after she had got kinda tired on the forex dance floor the day before. Factory orders posted a stronger than expected 2.7% gain in October versus the 2.5% forecast.

 

Coming up on the economic calendar...

 

Now we are waiting for yet another weekly jobs report from the US on Thursday and Prelim UoM Consumer Sentiment on Friday to get further hints about Ms. USA dancing direction.

 

Market Sentiment | AUDUSD Double Top Formation Below Ichimoku

 

Current market sentiment is mixed with the pair moving sideways inside the Ichimoku cloud on the 4 hour time-frame.

AUD/USD 4-Hour Chart AUD/USD 4-Hour Chart

Trading Strategy | AUDUSD Double Top Formation Below Ichimoku

Putting the technical, fundamental and sentimental points of the IDDA approach together, we could consider going for a short to medium-term position in the USD/CAD pair. Please visit out Premium Facebook Group for detailed strategy.

 

Here are Invest Diva's calculations for important approximate levels to keep an eye on:

Support Levels Turning Point Resistance Levels
0.7330 0.7330 0.7587
0.7381 0.7450 0.7690

 

you look like an invest diva join the movement button

 xoxo

Kiana 喜愛成
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