The bulls are unleashed after the Australian Dollar rejects the US$0.7115 support

December 1, 2021 - 2 months ago
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Tuesday’s whipsaw price action left the bears licking their wounds after the US$0.7115 whipsaw price action ended the New York session posting a Japanese ‘Spinning-Bottom’ candlestick.

Although the US$0.7115 support level was breached, it should be noted a Spinning-Bottom signals indecision in the market and that the pattern can be a reversal (bullish).

This candlestick should be identified as a signal when occurring in a down-trending market or at the bottom of a range.

In general, any Spinning Candle should be treated as indecision or pause in the market.

Although the bears inked in a fresh yearly low of US$0.7068, it is assessed from the rejection a potential bear-trap has been set due to the rebound.

Therefore, a break above US$0.7170 should ignite the bull-run momentum to the measured region of US$0.7215-65.

Australian Q3 GDP fell by -1.9% in economic data, significantly beating market expectations for a -2.7% fall.

The fall is the first quarter of negative growth since the 6.8% fall recorded in the June Quarter of 2020 and means the Australian economy is once again smaller than where it was pre the beginning of the pandemic.

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