Australian Dollar Forecast
The Australian Dollar just triggered an ABCD pattern on its daily continuation chart. This pattern has a shallow retracement, which is bearish. It also has skewing of over 4:1 (bars up to bars down), which signals strong bearish momentum. Based off this pattern, the minimum downside target zone is 0.62230-0.61355. That brings the recent October 2022 low back in play at 0.61810. I expect this market to reach this zone and potentially go even lower towards the next target zone of 0.59380-0.58710. However, there is some potential support on the way to the October 2022 low. The last leg down, starting May 10th, has created two small ABCD patterns. These patterns create Fib levels that often serve as potential support when grouped together. The levels to watch are 0.65037-0.64966 (currently holding as support), 0.64255-0.63925 (potentially strong), and 0.63545-0.63405. But, I believe these areas will only provide minor support which could trigger opportunities to short. Watch for further updates on this hot market either here or on Twitter (tbills_trading).
On the date of publication, Thomas Bills did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.