AUD in flames, SP500 too
AUD starts this week on the back foot. The best setup that can show this is on the AUDNZD, where today, we can see a huge decline. From the technical point of view, the drop is supported by the Head and Shoulders formation and by the breakout of the lower line of the symmetric triangle pattern. Yesterday, price tested the broken support as a resistance and test was positive for the sellers. With all this, everything seems ready for a bigger drop.
AUDUSD is ready too. Here we do have a triple top formation, then a flag and another small correction. Some may see an additional Head and Shoulders pattern, which only adds to the bearish sentiment here. The legitimate sell signal will be triggered, once the price will break below the lows from the last week.
Last but not least is the SP500, where we finally reached our long awaited target. We are so not surprised here. That is a great place for a bounce but we warn you not to catch the knife too early. If you want to buy, fair enough, but wait for the first signs of reversal first. As for now, we do not have any sign of the demand so the price can decline further.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis