- Daily: The AUD/USD is seen in the daily in a correction after a sharp decline.
- The correction has some bullish force judging from the candlestick last week that spanned from 0.82 to 0.85. The last 3 days of decline has only been a retracement. This tells me that the current correction to the bearish mode may not be over. Actually, this is the default assessment as always, to make sure my anticipation of a completed correction is not early.
- Let's continue to stalk.
- 4H and 1H: The 4H chart shows a possible RSI reversal forming just above 40, suggesting another rally swing towards 0.86. This is also the 50% retracement area and the lower half of a powerzone (previously support, may provide resistance now). Note this rally would also be a slingshot in the 4H chart using the SMA 50. This is when the price crosses the SMA and retests it again confirming the crossover signal.
- In the 1H chart, we see that the current rally is in a correction to between 50 and 61.8% near the 0.83 level.
- If the market can break above the declining channel resistance, near 0.8440, it should rally towards 0.86 before a major bearish attempt.
- However, if the market immediately breaks below 0.8250 and stays below, we may already be done with the correction phase. The 0.82 or 78.6% retracement is the lowest level after which, we have to consider bearish continuation towards 0.80 and 0.78,
Fan Yang Currency Analyst Commodity Trading Advisor