AUDUSD shooting star appears at 0.7574 that evidence price slumps below DMAs (on daily plotting). Hammer pattern candle occurs at 0.7565 levels to counter these slumps, while both leading as well as lagging oscillators are indicating strength in the minor uptrend, as a result, more rallies likely only on the sustenance of buying momentum (refer daily chart).
On weekly plotting, although the bears managed to break below trendline support, Bulls have managed to bounce back above 7EMA on Dragonfly Doji formation at 0.7541 levels but the upswings are restrained below 21EMA, “can bulls extend rallies” is dependent event on break-out above 21EMAs. Otherwise, the resumption of downswings is most likely on failure swings at this juncture.
MACD substantiates bullish sentiment in minor trend and bearish stance in the major trend, bullish crossover signal upswings to prolong further in the near terms.
The overall downside risks remain intact following the reversal from the January peak 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.
But for the short-term setup, there is room for some consolidation given the recent reversal from the March low amid an oversold setup.
Well, on trading grounds one-touch call options strategy is advocated with upper strikes at 0.7677 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 12 levels (which is neutral). Hourly USD spot index was at shy above -59 (bearish) while articulating (at 08:57 GMT).
For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
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