Don’t get bull trapped in AUD/USD, bulls seem to be exhausted
We cannot afford to say it's been a reversal on long term trend unless & until a clear confirmation (so for a bull call, advice is to wait until confirmation).
For now it seems to be still a downtrend, this has still been evident on daily chart as we can observe that from current price levels seem fragile to hold onto previous resistance at 0.7350 areas (today's highs - 0.7342).
So, this rejection while comparing with historical resistance we deem these levels are overweighed valuation, as a result price bound to drop.
Most importantly, volumes fading away on rising prices has been a red flag for bulls.
To substantiate this view the RSI (14) on daily chart has reached near 65 levels which is now signaling indecision but intraday charts reignites overbought pressures by evidencing divergence above 70's.
So this RSI's downwards convergence with massive price dips on intraday basis signifies bulls seem to be exhausted with their rallies.
While %D line crossover in overbought territory on slow stochastic curve is also evidencing clear selling pressures.
Hence, we could foresee more potential to collapse towards 0.7264 and then 0.7249 areas, on the contrary if it breaks 0.7350 decisively then that would expose to new stage of bullish trend.
So, don’t get bull trapped in AUD/USD as bulls seem to be exhausted, downtrend to resume.
For now it seems to be still a downtrend, this has still been evident on daily chart as we can observe that from current price levels seem fragile to hold onto previous resistance at 0.7350 areas (today's highs - 0.7342).
So, this rejection while comparing with historical resistance we deem these levels are overweighed valuation, as a result price bound to drop.
Most importantly, volumes fading away on rising prices has been a red flag for bulls.
To substantiate this view the RSI (14) on daily chart has reached near 65 levels which is now signaling indecision but intraday charts reignites overbought pressures by evidencing divergence above 70's.
So this RSI's downwards convergence with massive price dips on intraday basis signifies bulls seem to be exhausted with their rallies.
While %D line crossover in overbought territory on slow stochastic curve is also evidencing clear selling pressures.
Hence, we could foresee more potential to collapse towards 0.7264 and then 0.7249 areas, on the contrary if it breaks 0.7350 decisively then that would expose to new stage of bullish trend.
So, don’t get bull trapped in AUD/USD as bulls seem to be exhausted, downtrend to resume.
