Good morning traders,
Commodity currencies are very bearish today, with AUD as one of the weakest, following Monetary Policy Meeting Minutes. The AUDUSD pair fell towards 0.7500 area that has been technically expected already yesterday, when we recognized a five wave drop from 0.7676 high. We however believe that the pair can go much lower if we consider that it can be in wave three now of an impulsive bearish reversal. If that’s the case then looking towards 0.7430 target is reasonable while 0.7605 holds.
AUDUSD, 1H
Sideways price action on GOLD and a new leg down to 1300/1310 area can also be bearish for the Australian currency. On metal we are looking at a nice triangle on the intraday chart that is about to complete a pattern in wave B) soon. However, it’s important to wait on 1323 break to confirm lower prices into wave C), final leg of a complex correction.
GOLD, 1H
