AUDUSD has made a pullback to our breakout resistance line since breaking out of it yesterday. This is always a sign of big bears pushing price up so as to get a good entry price fearing they had miss out on the move. Our major resistance is at 0.7835 (overlap resistance, pullback resistance, breakout resistance, bearish divergence) and a possible drop could push price down to at least 0.7731 (38.2% Fibonacci retracement, horizontal support).
It is worth noting that AUDUSD which is positively correlated with NZDUSD is also similarly below major resistance.
RSI (34) sees strong bearish divergence vs price signaling that an impending drop could be occurring soon.
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It is worth noting that AUDUSD which is positively correlated with NZDUSD is also similarly below major resistance.
RSI (34) sees strong bearish divergence vs price signaling that an impending drop could be occurring soon.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.
This analysis is provided as general market commentary and does not constitute investment advice. Past performance is not indicative of future results