Before we begin with this write-up, we reiterate AUDUSD history repeats at sloping channel resistance (see monthly charts). We had advocated this around two months ago, please follow below weblink for more readings:
Well, for now, the failure swings at resistances of 0.7761 levels have evidenced price declines (see dailies).
The break-below supports at 0.7585 to bring in more slumps.
On daily terms, leading oscillators noise with strong momentum to signal selling pressures as they are converging to the prevailing downswings.
slightly indecisive but bias, while the momentum is signaled as the stochs converging downwards to the price dips.
While evidences crossover and 7DMA crosses below 21DMA that is again a signal of downtrend continuation.
Most importantly, Rising volumes with dipping prices and rising open interest (sellers’ interests) on both daily and monthly patterns in price behavior are in conformity to the resumption.
Despite yesterday’s price jump and attempts of upswings during early trade sessions today bears resume near resistance of 0.7585 levels pushing southwards. So, we urge not to get overestimated for dramatic spikes.
On broader perspectives, the failure upswings are seen at channel resistance as and when bulls approach this level and same on the downside as well, it takes support at channel support comfortably to bounce back, overall, the major price trend has been sliding in the sloping channel.
As a result, we think bears gaining traction in major trend again.
Well, on delivery basis, we encourage shorts in near month are advisable for targets of 0.7508 and 0.7439 levels in near terms, keep a strict stop loss of 0.7623 levels.
Alternatively, on the speculative basis, one can use tunnel spreads which are the binary version of the debit put spreads with ITM stikes of 40 pips above and OTM strikes 40-50 pips for targets of 40-50 in between pips with ease.
Having these positions one can catch hold rallies for shorting objectives, thereby, speculators can get hold entry points at much higher levels, so that our net returns could be enhanced with leveraging effects.