Kicking off the new week with this double top pattern ahead of potentially bearish news from Australia

Intermarket Snapshot

Equity Markets Bond Yields Commodities & Crypto DAX: 12045.38 +0.00%

FTSE: 7371.85 +0.54%

S&P 500: 2896.61 +0.81%

DJIA: 26157.06 +0.67% US 10-yr 2.136% +0.052

Bund 10-YR -0.22% +0.036

UK 10-YR: 0.836% +0.02

JPN 10-YR: -0.125% UNCH Oil: 52.74 -1.38%

Gold: 1338.30 +0.72%

Bitcoin: 7955.46 +4.15%

Etherium: 243.39 +5.45%

Fresh Market Headlines & Economic data:

Upcoming Potential Catalysts on the Forex Calendar:

BOE Saunders speaks in Southampton at 6:00 pm GMT

Japan M2 Money Supply at 12:50 am GMT (June 11)

Australia business confidence at 2:30 am GMT (June 11)

U.K. Claimant count & unemployment rate at 9:30 am GMT (June 11)

U.S. PPI at 1:30 pm GMT (June 11)

What to Watch: AUD/USD

We’ve got a pretty light calendar ahead, but we think the upcoming Australian business confidence data could spark some action for the Aussie. And with Mexico avoiding tariffs from the U.S., the Greenback should have some continued lift to start the week, so that makes this technical pattern on AUD/USD one to watch.

On the one hour chart above of AUD/USD, we can see a double toppish pattern fully formed with that fresh leg lower in today’s trade, followed by a retest of the neckline around the 0.6970 handle. It doesn’t look like we’ll get the break during the U.S. session, but it may come during the upcoming Asia session if the business confidence data disappoints. If it does, the next support is likely the broken resistance around the 0.6935 handle, which is within the daily ATR range of around 40 – 50 pips, so this is a target we could see in the next session or two.

For the bulls, it’ll probably take fresh trade war fears or a very positive Australian business update to get the market moving higher again, and if it’s still trading around the neckline during the event later, then this area is likely to draw in buyers of the pair with a target around the double tops. That’s also a rough one daily ATR from the neckline, so the potential R:R is acceptable for a short-term position. If the market is lower at the broken resistance area, even better as the odds that the market is ready to reverse upwards is higher given that stochastic is already showing potentially short-term oversold conditions.