After breaking the big daily trend line on dollar strength, we are now retesting it as well as the the trend line of the recent bearish move. So price action converged on a very important point, forming a potential double top as showed by the RSI divergence.
This could indicate that this is a retest before continuation of the bearish move and provide an early entry signal rather than wait for the price to test support again.
Fundamentally, Trump is going to the G-7 meeting so keep your eyes open for the news, trade will be at the centre of his agenda as he twitted today. Since Australia is a commodity trading state, it is affected by trade tariffs.
On the technical side, a break of the neckline could provide an early entry signal, but the counter trend line is not far.
Happy Trading!
This could indicate that this is a retest before continuation of the bearish move and provide an early entry signal rather than wait for the price to test support again.
Fundamentally, Trump is going to the G-7 meeting so keep your eyes open for the news, trade will be at the centre of his agenda as he twitted today. Since Australia is a commodity trading state, it is affected by trade tariffs.
On the technical side, a break of the neckline could provide an early entry signal, but the counter trend line is not far.
Happy Trading!
Trade active:
Neckline broken, trade entered with a generous stop.
Price bounced of a 200 SMA and 38% fib retracement, adding further strength to this resistance level.