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A potential reversal for AUDUSD

Tuesday, September 25, 2018 12:16 PM GMT

Today’s agenda includes important news, such as US Housing Price Index and US S&P/Case-Schiller Home Price Indices, while Traders are expecting major economic events tomorrow, such as Fed’s Interest Rate Decision and FOMC Press Conference. Traders should be cautious as we are expecting volatile action during these announcements.

According to the monthly timeframe, AUDUSD is having a great downside rally, while it is currently testing the Fibonacci 72.8% support level. Further to this, Stochastics has been oversold for a long time.


Heading to the weekly timeframe, the pair is following the downward trendline T1. Currently, the price is approaching the 5 EMA, which acts as a support.


Reviewing the daily timeframe, the pair is moving towards the trend line T2. The price is flirting with the support zone along with trendline T2, while RSI is remaining above 50 level. RSI behavior is an additional bullish indication according to the current price action.


Overall, the scenario indicates a potential reversal, which offers a possible buying opportunity for the Bulls.

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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