AUD/USD Will Strengthen Further!

Australian government has been trying hard to weaken the Australian Dollar AUD. But AUD has been stubbornly strong despite slowing Chinese economic growth and the Australian policy makers attempts to weaken it. AUD/USD has formed a classic Guppy Multiple Moving Average Three Point Breakout Pattern. Take a look at the chart below what shows this Guppy Moving Average Pattern.

AUD/USD Guppy Pattern

The rebound behavior that developed is a classic Guppy Multiple Moving Average (GMMA) three-point breakout pattern. The first part of the pattern is a test of the lower edge of the long-term GMMA. This happened in October 2013. The rally pause around $0.94 and test of the upper edge of the long-term GMMA is the second part of the pattern. This period also shows compression in the long-term GMMA which increases the probability of a trend change.

0 Comments