The AUD/USD pair traded within a wide range this past week but closed it barely up at around 0.7330. The Aussie plunged to 0.7237 as PM Turnbull suffered a leadership contest, which ended with him stepping down and Scott Morrison becoming the new PM.
USD/JPY H1 Short
The pair managed to keep in a downward channel, opening the markets with a gauge in a downward direction that was not filled in the first few minutes. This shows the strength of the bears and confirms the negative sentiment after the failure of the negotiations at the G7 meeting. Technically, we also have triangle formation in a downward trend – negative for the price, the likely decline. Activation of the larger Head And Shoulders formation at the end of the previous upward trend – also negative for the price. 20 and 50 periodic meanings are located in the sword. DeMarker is near an over-sales area, suggesting that the downward movement is still in place.
I expect the negative sentiment to be maintained reflecting the concerns about Donald Trump’s meeting with Kim Chen Un, as well as the deepening of the trade war.
Alternative Scenario: If the price moves back above the resistance zone is held there, the negative scenario will be spoiled and more likely to observe a pair’s raise