AUDUSD has tested the outer channel resistance towards the end of last week. Price did breach the 200 EMA but quicky retraced.
It then made a second attempt on the 200EMA and failed forming a bearish pin bar. If we look historically price has respected the 200EMA for several months now.
There is strong resistance at .78500 which I think price will struggle to break.
Just to note NZDUSD and AUDUSD are highly correlated and as stated earlier NZD could be setting up for a reversal so if you do decide to short the aussie run a tight stop.
It then made a second attempt on the 200EMA and failed forming a bearish pin bar. If we look historically price has respected the 200EMA for several months now.
There is strong resistance at .78500 which I think price will struggle to break.
Just to note NZDUSD and AUDUSD are highly correlated and as stated earlier NZD could be setting up for a reversal so if you do decide to short the aussie run a tight stop.
