AUDUSD is worth paying attention with a view to a short

AUDUSD at 0.7730 as I write looks very interesting now. We have had a Bearish Bat at 0.7700 become recognised and price fell 120 pips - not as far as expected before a bullish bounce back. Now we have price action resting upon a very strong resistance level, also a supply level.

H4 and H1 charts both show strongly overbought along with Daily chart showing overbought on RSI and approaching O/B on Slow Stochastics.

I think this can be very good to watch for a Short trade from here. There could be room for a big move making it worthwhile whilst the risk could be modest at this level.

John :-)

評論:

Whilst the technicals are in support of a short trade on AUDUSD the fundamentals are holding it off right now. USD remains bearish and wasn't helped this week by Janet Yellen's hawkish comments. Also AUD remains strong fundamentally with strong demand for Aussie products.
The bottom line here is don't rush into a short trade, let time pass and see what develops. Don't simply jump in to trade, let price action be the leader perhaps brought about by a change in fundamentals.