FX.co ★ Short-term technical analysis on AUDUSD

AUDUSD remains in a bearish trend making lower lows and lower highs. Price is trading around 0.7530 and as long as it remains below 0.7615, it will be vulnerable into making new lows below 0.7450.

In the 4 hour chart we recently got our first bullish sign. The RSI did not follow price into making new lows. Instead the RSI made a higher low providing us with a bullish divergence. This is an important warning to bears implying diminishing strength. The time for an upward reversal can be very close. A move above 0.7615 would be a reversal confirmation signal. Until then bears remain in control of the trend.