08.04.202220:29 Forex Analysis & Reviews: Weekly bearish candlestick formation in AUDUSD.

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

AUDUSD is ending the week close to its weekly lows. Price is at 0.7459 with a weekly high of 0.7663 and a low at 0.7429. The long upper tail (shadow) in the weekly candlestick pattern is a bearish sign. Price also retraced 61.8% of the entire decline and got rejected at key Fibonacci resistance.

Black lines- Fibonacci retracements

Green lines- expected path if price remains below 0.7663

AUDUSD has most probably formed an important high at 0.7663. I expect price to continue lower towards 0.67. As long as price is below this week's high I expect AUDUSD to continue lower at least towards 0.70. If the week following such a bearish candlestick pattern is negative, then the chances for our bearish scenario towards 0.70 and 0.66 will increase.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.