Relevance up to 15:00 2022-07-08 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Green line -major support
Red line -short-term resistance
Black lines- Fibonacci retracements
AUDUSD remains clearly in a bearish trend but the RSI is telling us that the downtrend is weakening and if certain conditions are met, AUDUSD could start a bounce towards 0.71 and why not higher. AUDUSD is now challenging short-term resistance as shown by the red downward sloping trend line. Breaking above this trend line at 0.6860 we will get a short-term sign of strength implying that AUDUSD could reach the 61.8% Fibonacci retracement of the last leg down. This short-term target is at 0.71. The bullish RSI divergence in the near term if combined with a break above the red trend line, will give us the bullish signal we expect.
