AUDUSD Update July 2015 (D)
Created on Saturday, 18 July 2015 01:41
Written by Austin Galt
We are looking for a final point 7 low in the broadening low formation. Let’s briefly take a looking using the daily chart.
AUDUSD DAILY CHART
While I thought the marginal false break low at 73.50c yesterday held some potential for the final low, the fact there was no follow through to the upside today leads me to believe there is still lower to go.
The PSAR indicator retains its bearish bias with the dots above price.
The Bollinger Bands show price moving away from the lower band and moving up to the middle band now would probably signify the rally is on. However, I am favouring a solid move back down which gets back to the lower band.
The RSI shows the current low setting up with a triple bullish divergence however a further move lower may still set up this triple bullish divergence.
I do believe we are very close to seeing the final point 7 low. Certainly, price trading back above the point 5 low at 75.33c would likely confirm that. This level is denoted by the horizontal line. It is my opinion that price is currently making a massive false break low below this level and once done a big impulsive move higher should follow.
Finally, while not shown, I have some yearly PSAR support at 72.41c and I fully expect price to crack that level. Previously I thought it would occur at a later date. I now suspect it will happen imminently.