The display of AUDUSD’s gravestone doji has been signaling the exhaustiveness of the previous bullish swings. The stiff resistance is observed at 0.9563 levels.
Gravestone doji is traced out at 0.9568 levels which is 5 pips away from this stiff resistance.
The minor trend of this pair has shown failure swings at this juncture couple of times in recent times (refer 4H chart).
The pair has been spiking higher ever since the formations of dragonfly doji and hammer pattern candles at 0.9303 and 0.9433 levels respectively.
Caution: The failure swings at the resistance of 0.9563 levels on overbought pressures.
For now, bulls are struggling for buying momentum to break-out this level.
While it has been a tight tug of war between bulls and bears in both AUDCAD’s minor and major trends.
After hammer and bullish engulfing formations even on the monthly chart, but the failure swings have been observed below downward trendline and 21-EMAs.
We could foresee little upside traction as RSI shows gaining strength at 37 levels, while stochs are indecisive on both timeframes.
On the contrary, bearish EMA & MACD crossovers that are backed by the overbought momentum indicated downside risks in the long run as RSI has been converging downwards.
Hence, at spot reference: 0.9557 levels, we advise boundary strikes with upper strikes at 0.9563 and lower strikes at 0.9546 levels.
Shorts in mid-month futures contracts are also advocated on hedging grounds with a view to arrest the southward targets of another 200 - 300 pips, but maintain strict stop loss of 0.9637 (i.e. 21-EMA levels).
Currency Strength Index: FxWirePro's hourly AUD spot index is flashing 39 (which is bullish), while hourly CAD spot index was at 8 levels (neutral) at 11:41 GMT.
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
