AUDUSD - SEVERAL INDICATORS FOR REVERSAL
In my opinion, there are several indicators on why we should be shorting this pair. You may have different views and this is definitely not meant for as an investment advise. Pleas do your own analysis and let me know if you agree with my analysis.
1) Price is correcting from its free fall of March 09 2020 to 78.6% Fib Ratio to 0.6696. Possible that price will touch the $0.67 mark but hitting $0.70 currently is out of the question since RBA would be keeping interest rates @0.25 percent or even lowering it as per Governor's earlier Speech.GDP rate forecast for AUD is not looking so favourable for this push as well. Fundamentally, AUD would be reporting loads of data the rest of next week and i do see some impact on the reason of this fall.
2) Price is at the strong resistance of the 200MA as seen. Also congruent to the downtrend line. Resistance is where buyers turn to sellers in no time.
3) MACD bullish divergence loosing its steam as bullish bars are smaller as compared to last 2 weeks surge which shows profit taking by buyers before the bears come in play.
4) RSI for this pair has been an average of a 64 pointer. I understand that for it to be oversold, 70 is the prime indication but if you compare it to its peak over the days/weeks or months of trading, the 64 point has been the average overbought condition on this pair. (at least on the daily timeframe)
1) Price is correcting from its free fall of March 09 2020 to 78.6% Fib Ratio to 0.6696. Possible that price will touch the $0.67 mark but hitting $0.70 currently is out of the question since RBA would be keeping interest rates @0.25 percent or even lowering it as per Governor's earlier Speech.GDP rate forecast for AUD is not looking so favourable for this push as well. Fundamentally, AUD would be reporting loads of data the rest of next week and i do see some impact on the reason of this fall.
2) Price is at the strong resistance of the 200MA as seen. Also congruent to the downtrend line. Resistance is where buyers turn to sellers in no time.
3) MACD bullish divergence loosing its steam as bullish bars are smaller as compared to last 2 weeks surge which shows profit taking by buyers before the bears come in play.
4) RSI for this pair has been an average of a 64 pointer. I understand that for it to be oversold, 70 is the prime indication but if you compare it to its peak over the days/weeks or months of trading, the 64 point has been the average overbought condition on this pair. (at least on the daily timeframe)
Comment:
I understand that for it to be ****overbought, 70 is the prime indication