AUD/USD Technical Technique: BEARISH
Aussie Greenback breaks 2019 assist, hints downtrend resuming
Close to-term sellers may be deterred as costs hover at assist
Shorts might discover a gap as RSI divergence hints at bounce
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The Australian Greenback is again on the defensive after following a palpable dovish shift in RBA rhetoric. Costs have damaged beneath assist guiding the upswing because the starting of the yr, hinting that the dominant downward development in opposition to the US Greenback has resumed.
Preliminary chart inflection level assist is at zero.7078, with a break beneath that exposing the zero.7021-41 space. A breach of the latter barrier might open the door for a substantive decline towards the zero.69 determine. Resistance begins within the zero.7142-70 zone. Turning again above that will neutralize instant promoting stress.
With costs squarely at assist, sellers might discover coming into quick now unattractive on risk-reward grounds. Constructive RSI divergence on the four-hour chart hints at ebbing near-term promoting stress nonetheless, opening the door for a corrective bounce. That may supply an entry alternative earlier than the bigger selloff resumes.
AUD/USD TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
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