Should investors be wary of the downside potential in the AUD/USD pair, which has formed a triple top pattern?

Should investors be wary of further downside potential in the AUD/USD pair, which has formed a triple top pattern?

06.10.2023

In yesterday’s U.S. currency trading, the U.S. dollar fell against the euro despite the fact that the number of new U.S. unemployment insurance claims, released yesterday, was revised downward from the market forecast of 209,000 to 207,000. The EUR/USD pair rebounded from 1.0500 to 1.0550 and broke above the 200-period simple moving average (SMA) on the hourly chart.The weekly candle formed yesterday closed as a bearish candle with a lower wick. We will be closely monitoring whether today’s U.S. employment report causes the U.S. dollar to weaken.

European currencies saw the pound fall against the Australian dollar after the UK’s September Construction PMI, released yesterday, came in significantly lower than the previous month’s 50.8 and fell below market expectations of 50.1 to 45.0. The GBP/AUD pair dropped from 1.9197 to 1.9069, forming a triple top pattern on the hourly chart.On the higher timeframe daily chart, the 20-day moving average (MA) is acting as a solid resistance level. Given the decline over the past two days, traders should remain highly vigilant regarding price movements during European trading hours.

Today, at 14:45, Swiss employment figures; at 15:00, UK Halifax house prices, German new manufacturing orders, South African total foreign exchange reserves, and Norwegian manufacturing production; at 15:30, Hungarian industrial production; and at 15:45, Frenchtrade balance and current account balance, at 16:00 Swiss foreign exchange reserves, at 21:30 U.S. and Canadian employment reports, at 25:00 remarks by Fed Governor Waller, and at 28:00 U.S. consumer credit balances. We should remain highly vigilant regarding the downside potential of the GBP/AUD pair, which has formed a triple top pattern.