If we look at Daily we see that AUDUSD is in a descending channel and in the lower end of this channel. The latest upswing in September failed to test the upper limit of the channel. That created the local downtrend that we see now in the form of a descending triangle.
It has broken below support levels from August and if we look at the latest candlesticks we see two bearish long shadow sticks , which suggest that the buyers fail to push higher - it also shows that the previous support is now resistance.
On the 4h we see the bounce of the old support, now resistance, more clearly and the AUDUSD is now testing the local support at 0.67275ish - the last bastion before a break down towards the channel bottom.
I would expect a bounce on 9MA on the RSI on the next move and then a decisive fall.
It has broken below support levels from August and if we look at the latest candlesticks we see two bearish long shadow sticks , which suggest that the buyers fail to push higher - it also shows that the previous support is now resistance.
On the 4h we see the bounce of the old support, now resistance, more clearly and the AUDUSD is now testing the local support at 0.67275ish - the last bastion before a break down towards the channel bottom.
I would expect a bounce on 9MA on the RSI on the next move and then a decisive fall.
Trade closed: stop reached:
I took this trade yesterday after the small push through and then it was followed by a larger bearish CS - unfortunately, this purely technical setup was countered by unexpectedly strong AUD data. Stop was reached 0.67353.