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jsaettele
Jul 9, 2020 10:14 PM

AUDUSD Median Line Behavior Change Warning Short

Australian Dollar/U.S. DollarFXCM

Description

AUDUSD traded back into and reversed from daily reversal resistance but the fact that price rolled over before reaching the 25 line indicates a weakening uptrend and warns of a break (similar logic to prolonged RSI divergence). When a parallel has provided support/resistance for an extended period of time and price fails to reach that parallel before reversing, it’s called a ‘space’. The original term was a gap but traders know gaps as something completely different. Below .6920 is the short signal.
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