Hello traders! From the perspective of Elliott Wave we are now in final Wave 5 of the Primary Wave 3. The Primary Wave 3 could finish it's rally at the 1.66213 according to the Fibonacci extension at 1.618 region. This price resistance is also the resistance formed at 12 August 2019, so we have 2 confluent reasons so far to believe that the market will shift into a bearish short term trend from this area, continuing the Elliott Wave pattern to start the Wave 4. The 3rd reason is that the RSI is in a very dangerous overbought region of 84.5 on a 8 hour time-frame at the time of writing this and 76.57 on a Daily time-frame. The 4th reason why I believe that the market will start to drop from that level is because on Tuesday 4th of February 2020 we expect a interest cut rate from the Reserve Bank of Australia which could imply the Australian Dollar to become stronger. Reserve Bank of Australia board members come to a consensus on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation, so we expect it to be 0.75%. More interest rates cuts are expected in the future of 2020.
Always make your own analysis before entering a trade and do not follow blindly everyone who posts ideas or provide signals. I wish you all a great day!