Forex Technical Update
The 1H AUD/USD chart shows a market that is attempting to double bottom, and breakout above a declining channel. I did break the channel resistance, but is now in a heavy throwback that might invalidate the break. Note the RSI is at 60, which is the resistance if the market is to maintain bearish momentum. So far it has acted as resistance. The strong 4H candle is also signaling bearish continuation, if it can clear the 1.0020 level. Clearing 1.0 would be more compelling for the bearish continuation scenario toward the next support near 0.9900.
The 4H chart shows that although the bearish momentum is maintained int he medium term, the most recent bearish attempt has been weaker as the RSI has failed to break below 30, and actually forms a bullish divergence. Therefore, the bearish outlook should not be that aggressive, hence the anticipation of 0.99 if it gets there. However, the bullish outlook has not materialized neither as the market still looks contained in the declining wedge seen in the 4H chart.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources