Australian$ with 2 Time Divergences. [WeeklyAnalysis]

Today the weekly analysis will be focused on two Australian Dollar Crosses which are showing Time Divergences and it could lead to a broader trend reversal.

Let’s take a look!

AUD/USD – MinMax divergence.

As you read in the article “Time Divergences. A new awesome concept!” there are two types of divergence:

  1. Divergence between a min and a max.
  2. Divergence between two bottoms or two tops.

For the Aud/Usd the divergence is of type one.

audusdh1

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As you can see, the weekly cycle is supposed to be bullish but the leg up lasted less than the leg down.

When this happen you have a time divergence and it anticipates a trend reversal.

In this situation the Aussie/Dollar showed the divergence on a strong area of resistance and it created a double reversal signal anticipating the strong move you can see.

The next support level is around 0,7500.

AUD/JPY – MaxMax divergence

As for the Aud/Jpy the divergence is of type and you can spot it between two tops.

This time divergence could also lead to a trend reversal and the main obstacle, at the moment, is the area around 79.00.

If the price breaks this level it could easily drop to 77.60 and 76.00.

The weekly price just turned bearish (CycleIndicator to -1) as well.

audjpyh1

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