Bullish Divergence On AUDUSD
FХ Strategist & Financial Commentator
After a bounce around 0.6780 area as I predicted in the previous video of February 3rd, in the second half of the last week, this pair showed a new bearish swing, marking a new bottom around 0.6650 area on Friday’ session.
The Average True Range, after setting the bottom of the last five years in the early December, is progressively increasing especially in the last two weeks, the Aussie is showing an increase of the average daily range and most probably there will be an ulterior increase of the volatility in the next month.
Looking at the RSI, we can see a clear bullish divergence, that should start a new bounce, after the previous one showed on the last week.
The bullish divergence it’s already working after the breakout of yesterday’s top around 0.67.
Considering this setup and the main support on 0.6670 area around the bottoms of August and October 2019, a bounce towards 0.68 area has very good possibilities, and could be reached by the end of the week.
The bullish setup would be denied, in case of a close below last Friday’s bottom, around 0.6650 area.
As always I recommend to trade carefully and to plan at best every move. Have a good trading and see you for the next video.