Post-RBA and ISM results — H&S neckline unbroken.

As posted earlier on, we noted a neckline @ 0.9330 and any upticks above 0.9350-0.9370 would void the H&S pattern formed.

Now, with that being said, we see in H4 a BEAR TWEEZ formed and another bear bar followed, signal the resistance level @ 0.9330. (This view is also supported by Bank of America’s view – http://www.forexlive.com/blog/2014/08/05/bank-of-america-says-to-sell-audusd-here/)

 

Now, looking ahead of the economic data for Australia, we would be keeping a note on the unemployment where unemployment revised from 5.8% to 6% on Thursday and China trade balance on Friday.

Meanwhile, U.S ISM Non-manufacturing PMI climbed the highest since 2005. EUR lagged while GBP holds it’s strength on great Service index at 59.1 further exceeding estimates. This would mark the 19th consecutive expansion in U.K.

The Japanese Yen weakened against dollar to near 103 level before edging back to 102.60 level at 1,54am GMT +8.

Point aside – Ghana Cedi fell another day against the dollar as the South Africa country requested bailout from the IMF, citing a 37% slump this year while the Latin country Argentina missed their payment last week to  their creditors – cited as vulture fund – and will high likely trigger the CDS clause which the vulture fund may gain more than the default of the bonds.

 

TBC again, ciao.