AUDUSD Bearish Divergence|Range Resistance|.618 Fib| Low Volume
Evening Traders,
Today’s analysis – AUDUSD – testing range resistance with bearish price action indicating a down move being plausible,
Points to consider,
- Trend at pivot point
- Resistance respected
- Range mid-point target (.618 overextension)
- Oscillators diverging (RSI & Stochastics )
- Volume below average
AUDUSD’s trend is at a trade location, price has a high probability of pivoting. Current range resistance has been respected with bearish price action.
There is a valid double bearish divergence which signifies weakness in the market. The oscillators established lower highs whilst the price established a higher high.
The Range midpoint with the .618 Fibonacci over-extension is the immediate target. Price is likely to retrace and respect this level due to technical confluence with the 200 DMA.
Volume is currently below average, an influx will coincide with the direction of the trend, follow through needs to be noticeable.
Overall, in my opinion, bearish price action at resistance allows for a valid short with defined risk. Discretion must be used upon management of the trade.
What are your thoughts?
Thank you for following my work!
And remember,
“In order to succeed, you first have to be willing to experience failure.”
― Yvan Byeajee
Today’s analysis – AUDUSD – testing range resistance with bearish price action indicating a down move being plausible,
Points to consider,
- Trend at pivot point
- Resistance respected
- Range mid-point target (.618 overextension)
- Oscillators diverging (RSI & Stochastics )
- Volume below average
AUDUSD’s trend is at a trade location, price has a high probability of pivoting. Current range resistance has been respected with bearish price action.
There is a valid double bearish divergence which signifies weakness in the market. The oscillators established lower highs whilst the price established a higher high.
The Range midpoint with the .618 Fibonacci over-extension is the immediate target. Price is likely to retrace and respect this level due to technical confluence with the 200 DMA.
Volume is currently below average, an influx will coincide with the direction of the trend, follow through needs to be noticeable.
Overall, in my opinion, bearish price action at resistance allows for a valid short with defined risk. Discretion must be used upon management of the trade.
What are your thoughts?
Thank you for following my work!
And remember,
“In order to succeed, you first have to be willing to experience failure.”
― Yvan Byeajee