AUDUSD: Possible Bull-Trap after penetrating 200-SMA
The Aussie has reacted positively as the market participants begin to increase risk appetite. Bulls should remain cautious as the fundamental picture still presents a bearish overall outlook for the exchange rate.
A failure to penetrate and close above the 61.8% fibonacci (0.9274) in tandem with RSI U-turning at a level that it hasn't breached since February 2018, highlights the possibility that fading this particular acceleration to the upside could remain the best strategy.
However, if RSI does break into overbought, we could see a change in outlook from bearish to bullish
A failure to penetrate and close above the 61.8% fibonacci (0.9274) in tandem with RSI U-turning at a level that it hasn't breached since February 2018, highlights the possibility that fading this particular acceleration to the upside could remain the best strategy.
However, if RSI does break into overbought, we could see a change in outlook from bearish to bullish