AUD/USD fell sharply on Monday, following the RBA decision, breaking below the upside support line drawn from the low of September 29th and stopping at 200-EMA. This has discarded the bullish case, but it has yet to confirm a bearish reversal signal. Therefore, the traders probably will stay sidelined for now.
According to the experts, a bearish reversal signal will be a clear dip below 0.7375, support marked by the high of October 18th. This will confirm a forthcoming lower low on the 4-hour chart and may initially pave the way towards the low levels around 0.7311. If the bears are unwilling to stop there, then a lower break could allow extensions towards the low of October 06th, at around 0.7220. Below that lies another potential support zone, at approximately 0.7169, from where the buyers probably will jump back into the action.
Now, in order to start examining the resumption of the prior uptrend, the traders would like to see a rebound back above 0.7550. This will confirm a forthcoming higher high on the daily chart and may see scope for extension towards the 0.7600 zones, the break of which could pave the way towards the inside swing low of June 3rd, near the 0.7650 area.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
According to the experts, a bearish reversal signal will be a clear dip below 0.7375, support marked by the high of October 18th. This will confirm a forthcoming lower low on the 4-hour chart and may initially pave the way towards the low levels around 0.7311. If the bears are unwilling to stop there, then a lower break could allow extensions towards the low of October 06th, at around 0.7220. Below that lies another potential support zone, at approximately 0.7169, from where the buyers probably will jump back into the action.
Now, in order to start examining the resumption of the prior uptrend, the traders would like to see a rebound back above 0.7550. This will confirm a forthcoming higher high on the daily chart and may see scope for extension towards the 0.7600 zones, the break of which could pave the way towards the inside swing low of June 3rd, near the 0.7650 area.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.