AUD/USD: bearish turn on triangle? – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the Australian dollar ended the week with solid gains at 0.7272, supported by a recovery in commodities prices, particularly base metals.

Key Quotes:

“The dollar’s broad weakness ahead of the holiday was also due to profit taking and position adjustment ahead of the new year, as markets are expected to maintain extreme low volatility these days. Technically, the daily chart shows that the pair remains within its latest range, contained by a symmetrical triangle which should be finally broken towards the downside to confirm a continuation of the long term bearish trend.”

“In the same chart, the pair is slightly above a flat 20 SMA, while the technical indicators aim higher above their mid-lines, in line with further advances. In the 4 hours chart, the 20 SMA has crossed above the 200 EMA and the price remains well above both, while the technical indicators have turned horizontal within positive territory, rather reflecting the latest range than suggesting a bearish move under way.”
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Source:: FX Street