AUDUSD: End to higher daily lows signals temporary pullback
Last week’s signals continued to point higher, and these have been confirmed with sentiment posting a fourth higher weekly low in a row and an initial gain of just over one Big Fig. While prices are trading above their key moving averages, which is positive for sentiment, the rally has stalled on Friday from close to 0.7684, a 78% recovery to the entire April-May selloff. A sequence of higher daily lows has been ended, and signals are pointing to a temporary pullback this week.
Allow room to sell an early rally and lower the stop to entry if the first target is met.
Entry: market and 0.7632, Friday's open.
Stop: 0.7719, May's top.
Target: 0.7408, July's low, and 0.7322, the three-week base.
Time horizon: this week.