Lately the AUD has had some remarkable recoveries over the USD. What we have in place is a potential breakout or a potential draw-down closer to the 38% retracement.
Our trend (so far), is upwards and this is going off of the momentum from 12/10/2018. Now the pullback was just a few shy from reaching the 38% retracement. One key technicality is that the 200 MA is the ultimate support along with moderate price action in the same region. The candlesticks show strength towards the top but the lower high burns the argument. So, which direction will it go?
We don't know.
Bull
The 20 day EMA will provide extra support if we close above it by 5pm EST. This will cancel out the lower high within itself and continue to follow the 45 degree line we see piercing the chart. Not many bullish candlestick patterns are showing up in the daily, except for the doji (2/13/18) followed by a deceptively long bullish candle. If we were to go by intuition, our mind would ask us to follow the trend or look at the bigger scale of things.
Bear
Candles have been showing exhaustion and have shown resistance with minor support of a -45 degree line. There hasn't been much buy-in for the bears as reversal patterns are just minor pullbacks.
Although I'm not giving a clear indication of price action. I would say that a consideration of placing the AUDUSD on our watchlist is a good thing just because if the price were to go nowhere, we will then know by the end of the trading week.
Our trend (so far), is upwards and this is going off of the momentum from 12/10/2018. Now the pullback was just a few shy from reaching the 38% retracement. One key technicality is that the 200 MA is the ultimate support along with moderate price action in the same region. The candlesticks show strength towards the top but the lower high burns the argument. So, which direction will it go?
We don't know.
Bull
The 20 day EMA will provide extra support if we close above it by 5pm EST. This will cancel out the lower high within itself and continue to follow the 45 degree line we see piercing the chart. Not many bullish candlestick patterns are showing up in the daily, except for the doji (2/13/18) followed by a deceptively long bullish candle. If we were to go by intuition, our mind would ask us to follow the trend or look at the bigger scale of things.
Bear
Candles have been showing exhaustion and have shown resistance with minor support of a -45 degree line. There hasn't been much buy-in for the bears as reversal patterns are just minor pullbacks.
Although I'm not giving a clear indication of price action. I would say that a consideration of placing the AUDUSD on our watchlist is a good thing just because if the price were to go nowhere, we will then know by the end of the trading week.