Could Expect AUD/USD Rebound?

Technically, the rebound in the RSI and the pause in MACD’s negative momentum is an encouraging signal for the next move in the price. However, as long as the indicators remain in bearish territory there is always a risk to the downside and therefore a potential for a retest of the 0.6800 area. At this point, we’re still slightly favoring more decline (Sell around 0.6800 with SL at 0.6850) to 0.6754 support. Break there will resume the fall from 0.6929 to retest 0.6671 low in medium-term.

Looking at the longer-term chart, you can see that the 0.67 level underneath has served as a “double bottom.” This is essentially the hard floor on the market and could be the beginning of the market turning around. If we can get a daily close above the 200-day SMA, then the market will start to show signs of a real longer-term change. If we get some type of good news out of the US/China trade situation, then that might be the catalyst to finally get this thing moving. In addition a clear break of 61.8% Fibonacci retracement, at 0.6925, will be also needed to recall buyers.

What do you think for that pair?

Trade closed: stop reached:

Because phase 1 of the US-China trade deal was signed last week, the price rebound and hit 0.6925 (as we predicted), but before that our stop was reached.