AUDUSD Wave B High (D)

The Aussie dollar looks to have made a reaction high today and I remain bearish about its short term prospects. Let’s review the daily chart.
 

AUDUSD DAILY CHART 

 
Price hit a high today at 76.76 c before reversing back down to form a bearish outside reversal candle. This should be the wave B high which will need to be confirmed with some downside follow through.
 
The Bollinger Bands show the high bang on resistance from the upper band.
 
The Fibonacci fan shows this high was around resistance from the 88.6% angle.
 
I have added Fibonacci retracement levels of the move down from the high into the wave A low and this wave B high was right at the 76.4% retracement level.
 
The RSI shows a triple bearish divergence which often leads to a significant decline.
 
The MACD indicator looks to be threatening a bearish crossover which should occur if price does indeed now follow through to the downside.
 
I expect the wave C low to be a marginal false break of the wave A low at 71.44. 
 
 

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Disclaimer

All information contained in this website is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Put simply, it is JUST MY OPINION.

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