Following yesterday’s wide spread down bar on the AUD/USD daily chart, which moved lower following the surprise rate cut by the RBA, the pair have continued lower in the forex trading session today, with further selling volume today. The significant change of course has been the daily trend dot, which has finally transitioned from white to red, and confirming the start of a bearish trend for the pair. In addition our other trading indicator has also transitioned, but in this case has moved from bright green to bright red, confirming the strength of this move lower, and with sustained selling volume over the last few days, the pair now look set to push lower in the short to medium term.
It is also interesting to note that over the last few weeks we have seen a series of lower highs and lower lows, all clearly defined with isolated pivots, and these are adding further mometum to the move lower. The most recent of these was on the 28th September with an isolated pivot high, and having broken through support in the 1.0255 region we can expect to see the bearish trend continue, possibly even to re-test the 0.9600 region in due course.
By Anna Coulling