FxWirePro: Reiteration on AUD/USD's Major Trend Continuation After Rejection of Resistance at 23.6% Fibos and at 0.7651
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We had already advocated above call a fortnight ago, our bearish targets 0.7648 as well as 0.7502 are very well achieved. Now on the verge of retesting the lows of 0.7209 levels (61.8% Fibo, see daily charts).
Currently, it is now testing support at 0.7328 levels, upon breach of this level then we could see more bearish pressures again.
Bearish Engulfing is formed at 0.7484 levels to slip below DMAs.
On daily charts, 7DMA crosses well below 21DM that signals selling pressures.
After 2 days of upswings in AUD/USD, exactly at the highs of 0.7401 levels (yesterday’s highs) the pair has rejected resistance at 7DMA, as a result we get to see downswings today.
While, Stochastic and RSI noise with strong momentum to signal selling pressures as they are converging to the current price dips.
Major downtrend restrain below 21EMA: As rallies are drifting towards 21DMA or 0.7838, that is where bulls have halted at 23.6% fibonacci retracements and turned around to resume bearish business to signal major trend continuation (see monthly charts).
Considering last three months rallies, as leading oscillators diverge to these previous rallies, some sort of skepticism arise owing to the recent Fed’s funds rate and RBA’s rate cut.
Well, on delivery basis, if the pair manages to break below 0.7328 levels, then go short in near month futures contracts for targets at 0.7209 or below levels in near terms is quite possible bet but keep a strict stop loss at 0.7446 levels.