When markets open this evening I will be looking at shorting the Aussie Dollar down to the daily trendline, as this has been respected a few times in the past couple of weeks, this will most likely be an intra-day swing trade to get in and get out. Only because of RBA releasing minutes on Tuesday followed by a speech from Yellen later that day, could make some shifts between the two trendlines / provide a clear breakout of the bearish trend the Aussie Dollar has been stuck in. On Friday evening it rejected the monthly 0.75540 support nicely with the bulls closing a bullish engulfing to help it recover from this price, however it then bumped back into the 4 hourly trend and rejected.
Stochastic is in the overbought region on the 1 hourly by quite a bit, possibly signalling a reversal to support the fall back down to the 0.7530 area. The head and shoulders formation provided a confirmation that the downwards trend would continue, but will it have now run out of steam...
I believe the Aussie Dollar will remain bearish hence my short signal and at least bump into the daily trendline, if not beyond. Fundamentals pending, this is my sentiment for now and I will be waiting for market open to see how this will play out.
Stochastic is in the overbought region on the 1 hourly by quite a bit, possibly signalling a reversal to support the fall back down to the 0.7530 area. The head and shoulders formation provided a confirmation that the downwards trend would continue, but will it have now run out of steam...
I believe the Aussie Dollar will remain bearish hence my short signal and at least bump into the daily trendline, if not beyond. Fundamentals pending, this is my sentiment for now and I will be waiting for market open to see how this will play out.