• Despite the hawkish surprise by the RBA yesterday, raising interest rates unexpectedly we are experiencing a fading momentum of the bullish reaction
• Reason behind this might be lack of conviction within the buyers
• US Dollar strength is back in the markets amid renewed fears amid banking woes and recession adding to that pricing of a continued Federal Reserve tightening policy
• Technically, picture doesn't seem really bright on the daily chart for the following reasons:
1- A potential head and shoulders pattern can be spotted and drawn on the chart
2 - 20 SMA is acting as a resistance with price unable to cross and close above it
3- The up trend support line which has been broken back in March has been re-tested from below several times with continuous rejection
4- Keep in mind that whether H&S pattern or any other, they have chance of failure and are subjective (other traders might see an inverse H&S on the same chart)
5- 0.6570 is the immediate strong support and longs can still be valid above that level with stops below it
6- After hitting a daily high of 0.67 following RBA surprise hike, we have seen some profit taking throughout the day and this might have happened due to the FED rate decision tomorrow and traders getting out of their positions while waiting for the outcome
Traders, if you like this idea please comment and like ✅
Here to answer all your questions,
Good luck
• Reason behind this might be lack of conviction within the buyers
• US Dollar strength is back in the markets amid renewed fears amid banking woes and recession adding to that pricing of a continued Federal Reserve tightening policy
• Technically, picture doesn't seem really bright on the daily chart for the following reasons:
1- A potential head and shoulders pattern can be spotted and drawn on the chart
2 - 20 SMA is acting as a resistance with price unable to cross and close above it
3- The up trend support line which has been broken back in March has been re-tested from below several times with continuous rejection
4- Keep in mind that whether H&S pattern or any other, they have chance of failure and are subjective (other traders might see an inverse H&S on the same chart)
5- 0.6570 is the immediate strong support and longs can still be valid above that level with stops below it
6- After hitting a daily high of 0.67 following RBA surprise hike, we have seen some profit taking throughout the day and this might have happened due to the FED rate decision tomorrow and traders getting out of their positions while waiting for the outcome
Traders, if you like this idea please comment and like ✅
Here to answer all your questions,
Good luck
Ramzi Abou Abdallah, CFTe, CMT
♦️ Subscribe to my telegram channel for daily signals for free, link below:
♦️ t.me/accu_trading
♦️ Subscribe to my telegram channel for daily signals for free, link below:
♦️ t.me/accu_trading