AUDUSD : two breakdowns = first indications of weakness
The AUDUSD pair is inside an upside trend, since June 2016. Higher tops and higher bottoms were defining that trend.
Currently, there are the first signs of a potential weakening bullish dynamic :
- The pace of the progression is slowing down, as shown by the break of the ascending trendline support. This was the first signal that should have raised our attention.
- The previous short term bottom (0.75576) has been broken too.
These two elements happened on the same day.
The next step to see if the AUDUSD is really constructing a reversal is the support at 0.75065, which is reinforced by the 200 days moving average. If that level had to be broken too, we would be looking for short term bounces to find opportunities to enter short on that pair.
Stay tuned, and feel free to leave a comment with your opinion
Currently, there are the first signs of a potential weakening bullish dynamic :
- The pace of the progression is slowing down, as shown by the break of the ascending trendline support. This was the first signal that should have raised our attention.
- The previous short term bottom (0.75576) has been broken too.
These two elements happened on the same day.
The next step to see if the AUDUSD is really constructing a reversal is the support at 0.75065, which is reinforced by the 200 days moving average. If that level had to be broken too, we would be looking for short term bounces to find opportunities to enter short on that pair.
Stay tuned, and feel free to leave a comment with your opinion