AUDUSD Faces Key Resistance: Bearish Outlook
Solid ECN – The AUDUSD currency pair climbed to EMA 50 on Monday and tested the 0.6455 resistance for the second time this month. As of writing, the pair is trading around 0.645 and declining, trying to stabilize itself below the 23.6% Fibonacci resistance level. Interestingly, the 4-hour chart formed a bearish long wick candlestick pattern, interpreted as a continuation of the downtrend.
The technical indicators are giving mixed signals. The relative strength index hovers below 50, indicating a bearish trend, but the awesome oscillator bars are green and about to flip above the signal line.
From a technical standpoint, the AUDUSD pair is in a bearish trend as long as it trades below the EMA 50. Based on the current data on the chart, the bearish trend should continue, aiming for last week's low, the 0.6361 mark.
The bearish scenario should be invalidated if the Australian dollar climbs above the 50% Fibonacci resistance level.