AUD/USD: Downward Pressure Continues
AvaTrade | Sep 10, 2014 05:12AM ET
The AUD/USD pair is trading below the downward trend line on a 60 minute time frame. The price has pierced the Bollinger band and piercing of the Bollinger band does have a significant importance when this takes place at an important level of support or resistance. However, the important level of support is not close yet so we may see this downward movement continue. The volatility for the pair is high as it is trading away from its 20day moving average.
The RSI is showing a clear sign of divergence in relation to the price action which means that while the price is making the lower low, the RSI is not, therefore the bias could be towards the upside. However, if the RSI breaks its upward trend line, and stays below it, this would confirm that the downward trend could continue.
Important Zones
Resistance Zones
0.9404-0.9372 Major
0.9290-.9263 Minor
Support Zones
0.9028-0.8992 Major
0.8923-0.8888 Minor
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
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