Correction continues, supports are getting closer and closer…
Movements seen in the last two days of the current week continue. USD is stronger and it does not look like this movement is about to finish today. On few instruments we can see clear targets for those corrections and there are very high chances that we will get there soon.
EURUSD for the last four trading days is making lower highs and lower lows. The potential target here is around 40 pips lower where we have an up trendline, correction equality pattern and the horizontal support. That area around the 1.1265 looks delicious for the potential buyers, we just have to wait for the price action there to back up the theory.
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AUDUSD is still under the influence of the RBA. Yesterday we corrected this bearish movement a little bit but at the beginning of the European session the bullish movement stopped. By the way, that was a beautiful display of the price action principle that the broken support becomes a resistance. Short-term direction is only one – south.
GBPUSD is aiming the upper line of the wedge, They want to test it as a support. In the same place we do have a 38,2% Fibonacci retracement of the latest upswing. That area looks strong and we can have a similar situation here as we are having on the EURUSD.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis