FxWirePro: AUD/USD whipsaw pattern plummets major supports, “strength confirmed but momentum dubious, volumes confirmed but OI dubious”

Well, as stated in our previous technical write up, please be noted the price slumps, this isn’t a magic or miracle but sheer analysis.

The bullish effects have consistently been restrained at 0.7761, and after this whipsaws, pattern after the brief upswings has evidenced slumps with bearish SMA crossover (see weekly charts).

The failure swings after whipsaws at this resistance have evidenced price declines that have collapsed below SMAs and major supports also (i.e. 0.7586, 0.7439 and 0.7305 levels).

You should not isolate price action in an accurate technical study, well, that’s the reason we’ve taken volumes in to consideration. As you could probably make out from the histograms showing rising volumes with dipping prices would imply that the trend going in bears favor.

MACD’s bearish crossover signals the downswings likely to extend further.

Convergence between recent price dips and RSI is indicating the strength in selling interests, while stochastic curves evidence the %D crossover that signals that the selling momentum is intensified.

Intraday speculators, you could also effectively utilize FxWirePro currency strength index that measures the performance of the basket of eight currencies on an hourly basis.

Contemplating all these insights, for today, on intraday speculative grounds (at spot ref: 0.7209) we recommend shorts via tunnel spreads which are the binary version of the debit put spreads.