For a long time, AUDUSD has not had a significant trend. We can see the price has been fluctuating for a while. The descending triangle has been forming since the end of April. As we know, the descending triangle is a bearish signal.
The price would fall when the triangle finished. Recently, we caught a breakout here. The angle is steep, and the price goes down 1.2% in 8 hours, however, for this descending triangle, 1.2% is far from enough. Will the price continue to go down?
The Bollinger Bands have shrunk and now they start to broaden, meaning the breakout is happening. Even though the Bollinger Bands are getting broader, the price line still broke the lower Bollinger Band, the resistance power here could be strong. MACD has been balanced for 15 days, will it change here? What we do know is that MACD just made a bearish cross. Standard deviation also started to go up, which means the price is facing a challenge. Could some big changes be on the way?
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
