FxWirePro: AUD/USD bulls may drag rallies maximum upto 21-DMA but don’t be bull-trapped as major downtrend still intact – Use digital calls and mid-month futures

AUDUSD bulls break-out minor resistance of 7DMA after testing supports of 0.7161 levels, showing strength at this supports of 0.7161, more rallies likely up to 21DMA as leading indicators confirm the momentum.

Despite the bearish pattern occurrences such as shooting star, bulls have managed to bounce back above 7DMA.

As stated in our previous post, the major downtrend is prolonging after slipping below channel resistance. Downswings have been sliding through sloping channel – bearish momentum remains intact despite this month’s negligible attempts of spikes. The prices dropped after consistently restrained at 0.7761 & been breaking major supports at 0.7439, the current prices have again slid below EMAs.

Even on weekly plotting, the failure swings after whipsaws at resistance have evidenced declines below SMAs and major supports.

Most importantly, volumes build up has been massive, rising volumes on declining prices is conformity to the declining trend.

But for the day, upswings favored by healthy bullish momentum both RSI and stochastic curves.

Hence, intraday and short-term speculators can eye on bullish targets, which means upward travel of another 40-50 pips can be possible as we don’t see any selling interest from any indicators.

Trading tips:

On intraday terms, as both stochastic and RSI noise with strong momentum in buying interests as they are converging to the ongoing upswings, we advocate staying long via one touch binary call options for a target of 40-50 pips. On the flip side, stay short in mid-month futures on hedging grounds as more slumps are on the cards in the weeks to come.