AUSUSD 1998 Lows| Volume Climax| Technical Level
Evening Traders,
Today’s analysis will be on the Australian dollar, taking a hit after breaking local support. Currently it’s trading at a pivot point that needs to be defended by the bulls.
Points to consider,
- Consecutive lower highs
- Local support breached
- 1998 Lows tested
- Volume climax evident
- RSI oversold
- Stochastics in lower region
The Australian dollar has been putting in consecutive lower highs, a clear defined down trend on the monthly time frame.
Local support was breached earlier this year, posting a 17% loss; it has officially tested its 1998 lows. This area is a strong trade location, pivot point, where a bounce was expected.
The RSI is officially oversold; a return to neutral territory is imminent. Stochastics on the other hand is trading in the lower regions, can maintain here for an extended period of time, however lots of stored momentum to the upside.
There is evident volume climax, signally seller exhaustion, allowing bulls to defend promptly.
Overall, in my opinion, a relief rally is probable from such oversold conditions, this really all depends on the current macro situation.
What are your thoughts?
Please leave a like and comment,
And remember,
“Opportunities come infrequently. When it rains gold put out a bucket not a thimble.” – Warren Buffet
Today’s analysis will be on the Australian dollar, taking a hit after breaking local support. Currently it’s trading at a pivot point that needs to be defended by the bulls.
Points to consider,
- Consecutive lower highs
- Local support breached
- 1998 Lows tested
- Volume climax evident
- RSI oversold
- Stochastics in lower region
The Australian dollar has been putting in consecutive lower highs, a clear defined down trend on the monthly time frame.
Local support was breached earlier this year, posting a 17% loss; it has officially tested its 1998 lows. This area is a strong trade location, pivot point, where a bounce was expected.
The RSI is officially oversold; a return to neutral territory is imminent. Stochastics on the other hand is trading in the lower regions, can maintain here for an extended period of time, however lots of stored momentum to the upside.
There is evident volume climax, signally seller exhaustion, allowing bulls to defend promptly.
Overall, in my opinion, a relief rally is probable from such oversold conditions, this really all depends on the current macro situation.
What are your thoughts?
Please leave a like and comment,
And remember,
“Opportunities come infrequently. When it rains gold put out a bucket not a thimble.” – Warren Buffet