Home Technical Analysis AUDUSD: Long black candlestick warns of further debasement

AUDUSD: Long black candlestick warns of further debasement

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AUDUSD has showed signs of weakness last week after failing to breach through the former resistance of 0.8160 as seen on the provided weekly chart.

The candlestick traced last week was long enough to stop the bullish impetus seen during  the previous period, while prices couldn’t clear the value of McGinley 20 indicator.

AUDUSD-FXCOMMENT-24-05

Additionally, the median line of the Pitchfork channel has been cleared, opening the door towards the lower line of the channel.

RSI14 has been resisted in the momentum resistance line at the value of 50.00.

Ultimately, adding the historical volatility indicator suggests potential bearish resumption over upcoming sessions.

All in all, the AUDUSD pair is biased to the downside after failing to maintain levels above 0.8160; whilst the door is opened to re-test the medium-term around 0.7535.

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Amir El-Araby Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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