This pair is about to drop down to strong support which has been tested 3 times (in my opinion) and therefore we have a strong support level. We can see on the 240-minute (4 hours) timeframe that we have rejection on the trendline and our RSI is over 50 which means that we are in an overbought position. Therefore I am willing to short this pair.
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Strong support retested again for the 4th time. We can also see that the RSI is under 50 which shows that the pair has been oversold. I am waiting for the pair to make a move to the upside and touch the trendline, and therefore I am willing to take a long trade.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You...
We might be seeing a trend reversal because of a few factors. First of all, we are seeing a touch on the trend line and a rejection. We can also see an "M" pattern forming in the 240-minute timeframe (4 hours), which might lead to a bearish movement to the downside. The last factor is the bearish divergence and the overbought condition the currency pair is in....
Head and shoulder pattern + Touch on trendline
Spotted the head and shoulder pattern on the daily chart. On the same time, we can spot a touch and a rejection on the trendline (the red wick). This may mean that we have to short the AUD as it indicates that there will be a downward movement.
First analysis hope it is okay, open to constructive criticism!:)
