AUD/USD - Bearish Divergence - short setup
AUD/USD hovers around 5-DMA at 0.7936, intraday bias lower.
We have evidenced 'Bearish RSI divergence' on the 4-hourly charts which raises scope for downside.
Upside finds major resistance at weekly 200-SMA at 0.8007, bullishness only on break above.
Momentum indicators on daily charts are at overbought levels and are showing a turn lower.
Further, the occurrence of a long-legged Doji at highs suggests possible correction. Rollover of RSI and Stochs from overbought levels will confirm bearishness.
The next big event risk is the FOMC decision on Wednesday which will decide future price movement.
In today's economic docket, the release of US flash PMI print and existing home sales data will be looked upon for further impetus.
Support levels - 0.79, 0.7842 (23.6% Fib retrace of 0.73712 to 0.79878 rally), 0.7746 (20-DMA)
Resistance levels - 0.7967 (July 24 high), 0.7987 (July 20 high), 0.8007 (weekly 200-SMA)
Good to go short around 0.7940/45, SL: 0.80, TP: 0.79/ 0.7845/ 0.78
We have evidenced 'Bearish RSI divergence' on the 4-hourly charts which raises scope for downside.
Upside finds major resistance at weekly 200-SMA at 0.8007, bullishness only on break above.
Momentum indicators on daily charts are at overbought levels and are showing a turn lower.
Further, the occurrence of a long-legged Doji at highs suggests possible correction. Rollover of RSI and Stochs from overbought levels will confirm bearishness.
The next big event risk is the FOMC decision on Wednesday which will decide future price movement.
In today's economic docket, the release of US flash PMI print and existing home sales data will be looked upon for further impetus.
Support levels - 0.79, 0.7842 (23.6% Fib retrace of 0.73712 to 0.79878 rally), 0.7746 (20-DMA)
Resistance levels - 0.7967 (July 24 high), 0.7987 (July 20 high), 0.8007 (weekly 200-SMA)
Good to go short around 0.7940/45, SL: 0.80, TP: 0.79/ 0.7845/ 0.78
Bias lower, stay short.