AUD/USD – A retest of 1.1 likely?
I’ve been looking at the AUD/USD closely over the past few weeks and wondering whether it will retest the high of 1.1010 soon or not.
Taking a look at the weekly chart, you can see how it’s been ranging for the past 10 weeks. Not a pretty picture. However, one thing I have noticed is how for the first time since the high, the Stochastics have turned around below the half way line, in addition to the AC turning green, again, below the half way line.
If however, we look at the Monthly chart, we see the complete opposite. We see how Stochastics are really high, turning downwards, we see how the AC is red and again above the middle line.
So what does all of this mean? The way I see it is, this indicates there could be a re-test of 1.1 in the coming few weeks before a long term downward spiral of many hundreds of pips.