Baxia Markets
June 02, 2021

Could AUDUSD Turn Around?

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For more than two months, the price of AUDUSD has been going up. In simple terms the US dollar has been struggling. From the 4 – hour plot, we can see that the price has stopped climbing. It has been hovering around 0.775 for a while. Does this mean the price is lacking momentum? Bollinger bands have shrunk, and the price has been testing inside the Bollinger Bands more frequently. The price broke out the upper Bollinger Bands again; leading us to believe the price is gaining the power to go down.



The constant hovering around 0.775 does give us some sort of hint as to what can happen. The descending triangle is almost complete. This triangle has been forming for more than three weeks, something that has been very steady and convincing. Each wave inside the triangle is even. Also, the price has tested downwards more than upwards. Now, this triangle is about to finish. Keep in mind the descending triangle is always considered a bearish signal.




On the other hand MACD is going up. However, this is a lagging indicator; it could reveal the upward breakout which just happened. William R% is already overbought; this is a very uncertain situation, which means the price could go down anytime. Most of the signals are bearish; what are your thoughts?


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