AUDUSD - Sharp reversal

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AUDUSD (1H) - short term bullish bias

The Australian dollar jumped overnight and started to recoup losses from last week's sell-off. The RSI had reached the over-sold area which suggested an over-extension. As the indicator recovered into the neutral zone, a bullish engulfing candle broke above the moving averages and the bearish trend line. This is a strong case for a reversal. The 20-hour MA has crossed above the 30-hour in a textbook bullish fashion. We would expect the pair to consolidate around the MAs before moving up again.

Key support: 0.6840
Key resistance: 0.6900

Penafian

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