FxWirePro: AUD/USD breach below falling wedge and rising channel supports, hammer pattern counters – Trade boundary binaries and short hedge

AUDUSD shooting star and gravestone doji appear at wedge resistance that evidence considerable price slumps (on daily plotting), as a result, it has broken below wedge baseline that acted as strong support so far.

On the flip side, hammer pattern candle occurs at 0.7455 levels to counter these slumps, consequently, we witnessing rallies from last 2-3 days.

On weekly plotting, the bears managed to break below channel support, Can bears extend double top formation and breach neckline..?

More dips likely only on selling failure swings below wedge baseline and on mounting bearish momentum.

MACD to substantiate this bearish stance, bearish crossover signal downswings to prolong further.

The overall downside risks remain intact following the reversal from the January peak (T2) and failure against the medium-term range highs.

This bearish bias is in line with the series of lower lows and highs since that timeframe resulting in a renewed trending bias.

For the short-term setup, there is room for some consolidation given the recent reversal from the March low amid an oversold setup.

However, there remains little evidence of a sustained reversal at this point as we still see risk for new lows.

Well, on trading grounds boundary binary options strategy is advocated with upper strikes at 0.7594 and lower strikes at 0.7505 levels.

Alternatively, one can uphold shorts in futures contracts of mid-month futures with a view to arresting further downside risks.

Currency Strength Index: FxWirePro's hourly AUD spot index is inching towards 109 levels (which is bullish). Hourly USD spot index was at shy above -7 (neutral) while articulating (at 07:23 GMT).

For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex

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