Overview:- Earlier AUD/USD was doing so well and we have seen an unstoppable downfall from 0.7412 to 0.7005 level. The stories of bear’s victory can be seen on the daily chart levels which is an incredible move from bear’s campaign. From Starting of this week pair remained depressed and seems like bears have become tired now trying to handover the charge to the bulls.
Well primary to secondary trend is up so it’s not going to be an easy task for bears to take it downside, because the current downfall may be a correction or profit book. The bulls have reacted aggressively it seems like bulls are doing well to from the key support level.
From technical prospective we can see on 4 hourly chart a short term rounding bottom pattern has been formed which is flashing upside signals. The MACD is also showing bullish crossover on the 4 hourly charts which is a recent development also, RSI turned up from the oversold territory which is favoring the bulls for the short term. It’s an early sell call we will get clear confirmation above the 0.7100 level. An hourly closing above the 0.7100 level will open the way towards the 0.7150 level and 0.7200 at least. .
A short term uptrend line is also providing us bullish signal on the daily chart. The 0.7200 can be considered as key resistance level followed by 0.7280 where 0.7060 is a major support level followed by 0.7000 level.
Trade idea:- One can go for buy at 0.7110 for the target of 0.7200 and 0.7280 with the stop loss of 0.7050.
Disclaimer: This is to be considered a marketing communication only, this does not contain, and should not be construed as containing, investment advice or an investment recommendation or investment research or, a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. Past performance is not a guarantee of or prediction of future performance. Cabana Capitals does not take into account your personal investment objectives or financial situation. Cabana Capitals makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by an employee of Cabana Capitals, a third party or otherwise. Consequently, any person acting on it does so entirely at their own risk. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of Cabana Capitals. This communication must not be reproduced or further distributed without prior permission.
