AUDUSD Update May 2015 (D)
Created on Wednesday, 20 May 2015 02:06
Written by Austin Galt
We are looking for a higher low to form before a massive bear rally unfolds. Let’s see where things currently stand using the daily chart.
AUDUSD DAILY CHART
We can see price has traded up to put in a new high since the last report. This is a higher high and we just await a higher low and then this rally can really get a wriggle on.
The PSAR indicator finally has a bearish bias after price busted the dots on the downside a couple of days ago.
The lower indicators, the RSI, Stochastic and MACD, all show a bearish divergence at the recent high while the latter two indicators have both just made a bearish crossover. So the likelihood is for lower prices going forward.
I am still looking for a deep retracement of the move up from low and favour the 88.6% Fibonacci level which stands at 76.04c.
I have drawn a Fibonacci Fan and I expect the higher low to be around support from the 88.6% angle.
Finally, if price keeps on the same downward trajectory as it has been from the top then a low around the aforementioned levels is set to occur right at the end of May.