Forex Technical Update
Risk-off trading dominated the 11/9 European session. The AUD/USD fell and in the 1H chart we see the market pushing the RSI below 30 establishing short-term bearish momentum. At the start of the US session, we see some support at the November low near 1.02. The inverted head and shoulder scenario given in the previous report is definitely invalidated. Now as we question whether this price action is a sign of bearish continuation, we can find more clues if there is a pullback that fails to break back above 1.2780. A break below 1.0200 then opens up the bearish continuation scenario.
The 4H chart shows a bearish continuation target using a swing projection. This targets the 61.8% retracement level near 0.9908. There is also a support above that at 1.0070 near 50% retracement. The 4H chart shows continuation of bearish momentum as the RSI failed to push above 60, and is now sliding below 40.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.