AUDUSD Oversold Bounce| Trading Range| Technical Divergence

2020年6月8日

Evening Traders,

Today’s Analysis – AUDUSD – recovering from weekly oversold conditions, trading in an important range where further price development will allow for a directional bias.

Points to consider,
- Weekly Trading Range
- 21 MA Breached
- Technical Bearish Divergence
- Oversold Bounce
- Extended Stochastics

AUDUSD has entered its macro weekly range from oversold conditions, where it is likely to consolidate and test the range median before another impulse move.

The 21 Moving Average has been breached, the indicator can now act as a visual support guide upon a back test.

AUDUSD has a technical bearish divergence at the range high; this is a sign of weakness in the current market. The oscillators are putting in higher highs whilst the price is establishing a lower high.

The Stochastics is currently overextended; a retest of at least the range median will cool of oscillators.

Overall, in my opinion, AUDUSD is likely to retrace and trade within the range before its next impulse move. The immediate direction is short due to trading at the range high. Further consolidation will help with the directions bias.

What are your thoughts?

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And remember,

“Intelligence is the ability to observe yourself without judging yourself. In essence, this is mindfulness.” Mindfulness”
― Yvan Byeajee