FxWirePro: AUD/USD bears back in action, major trend acts as per FxWirePro’s whims and fancy popping up with shooting star to drift back in range

Shooting star pattern candles have occurred at 0.8051 and again at 0.8033 levels on AUDUSD peaks of rallies (refer daily chart). The same pattern has occurred at 0.7825 levels on monthly terms

Consequently, the bears have managed to show their effects by evidencing price dips (on both timeframes).

The stiff resistance level was rejected at 0.8075 and ever since the occurrence of these bearish patterns, the bears have managed to breach below the strong supports at 0.7875 – 0.78 levels.

For now, we foresee more slumps as the current price slid below DMAs despite from last two days upswings and 7DMA crosses below 21DMA which is a bearish crossover.

The bears have shrugged off to head southwards breaking above stated strong support at 0.7575 despite the hammer pattern candle has occurred,

We foresee more slumps upon indications from both leading and lagging oscillators. Break below 0.78 would be even more clarity for the resumption of the major downtrend.

Thereby, the short-term trend seems weaker upon above-mentioned shooting stars formation which was stated in our previous write up, while bearish RSI divergence was also traced out in that write up in conjunction with stochastic and MACD’s substantiation for the prevailing weakness.

On a broader perspective, it was also stated in our previous post that the major trend breaching long lasting range in the consolidation phase (refer monthly chart), but for now, as per our scepticism for further rallies, the shooting star formation in last month’s candle (refer monthly charts) has now resumed the major downtrend to fall back in the same range.

Both leading oscillators (RSI & stochastic) on this timeframe, indicate overbought pressures.

Hence, contemplating above technical rationale, at spot reference: 0.7784, upon breach below 0.78 the intraday speculators can easily eye on minimum southward targets upto 0.7745 levels, thus, snap rallies and deploy one touch binary puts.

Currency Strength Index: FxWirePro's hourly AUD spot index has shown -6 (which is neutral), while hourly USD spot index was at -74 (bearish) at 05:59 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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