Currently, this set up looks to be my favoured for the week. AUD/USD has found a resistance zone, as marked both on the weekly and daily after a bullish rally - are we due a sizeable pullback?
With resistance found, price has formed a new lower high as highlighted supported with a technical strength score of -5. To me this could show that bulls are becoming outnumbered and a failure to produce new highs could suggest this. After forming a new lower high, price has broken below an ascending trend line coinciding with closing below the previous, potential higher low.
Zooming in on the 4 hour time frame, after price broke below the ascending trend line, we saw a short term pullback with price rejecting the 50ema as resistance, potentially forming a new lower high?
If I can secure an entry on this pair, I will be targeting the previous weekly high which held as resistance for some time at 0.78345.
With resistance found, price has formed a new lower high as highlighted supported with a technical strength score of -5. To me this could show that bulls are becoming outnumbered and a failure to produce new highs could suggest this. After forming a new lower high, price has broken below an ascending trend line coinciding with closing below the previous, potential higher low.
Zooming in on the 4 hour time frame, after price broke below the ascending trend line, we saw a short term pullback with price rejecting the 50ema as resistance, potentially forming a new lower high?
If I can secure an entry on this pair, I will be targeting the previous weekly high which held as resistance for some time at 0.78345.