FxWirePro: AUD/USD whipsaws in minor trend show slides, breach of range and channel resistance in major trend, can it travel equidistant price targets?

AUDUSD forms whipsaws pattern after a brief uptrend, consequently, bears have managed to show their effects by sliding below SMAs on intraday terms.

For now, we foresee more slumps as it attempts to break below major support at 0.7909 levels, most likely bearish SMA crossover would give us more confirmation of this bearish stances.

But on broader perspectives, the major trend has now been in consolidation phase breaking above the sloping channel, as the current prices are spiking above EMAs, we get the skepticism on further rallies that should make the equidistant travel of previous channel (refer monthly charts).

Momentum indicators (on the daily chart) have been evidencing downward convergence that signals the strength in the bearish sentiments. But on monthly terms, it is signaling strength and momentum in the consolidation phase.

For the month, upswings are not favored by healthy bullish momentum. Both RSI and stochastic curves have been slightly indecisive at this juncture.

MACD on this time frame signals bearish swings to prolong further, while the lagging indicator indicates the consolidation phase to extend further.

Hence, at spot reference: 0.7909 the intraday speculators can eye on southward targets upto 0.7870 levels, which means further downward travel of another 40-50 pips as we don’t see any dramatic buying interest for now.

Contemplating above technical rationale, on trading perspective, it is advisable to buy one-touch binary put options, the strategy is likely to fetch leveraged yields as long as underlying spot FX keeps sliding on or before the binary expiry duration.

Currency Strength Index: FxWirePro's hourly AUD spot index has shown 15 (which is neutral), while hourly USD spot index was at -81 (bearish) at 09:24 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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