News & Analysis

Chart of the Day: Thursday 8th August

August 9, 2019
AUDUSD- Hourly


Following this morning’s early break above the trend line at 0.6764, we saw a further bullish engulfing candle form and the pair push higher. This short-term activity has captured our interest resulting in the commodity-driven pair into our Chart of The Day.

Just this afternoon, the Aussie managed to break above the previous swing high at 0.68 and usually such a move would suggest the downtrend is over, and a new one has begun. However, the current RSI level (Relative Strength Index) is signalling the price has reached overbought territory pointing to a price reversal.

Given the longer-term picture remains bearish, it may be worth considering this bullish activity with a grain of salt. Should it continue, the next key area of resistance sits within the region of 0.6850


Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs.  Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.


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