AUD/USD - Continues Its Bearish Trend

By: Doug Rosen

Just as last week we find this pair propped just on the 55 ema, a very strong area of dynamic support. This pair is looking bearish to me because the 5 ema is not too far above price and the lower Bollinger Band is open and pointing down giving price permission to flow out to the down side. The Stochastics also points down. A break of this weekly 55 price could find its way down to the weekly 144 ema which is a thousand pips down.



Looking at the daily chart we are also looking very bearish except we are just above an ascending trend line which is the bottom of a price trap. Price appears to be pushed down by the daily 5 ema which has recently crossed below the 233 ema and it looks like we may be getting a downward crossover in the Stochastics oversold zone which is very bearish. I would also like to add that the daily ema's have strong angle and separation between one another indicating fast speed and momentum to the downside, with the lower daily Bollinger Band wide open and pointing downward a break thorough the trend line may be imminent.



Moving over tot he 4 hour chart I see conditions are equally bearish. The 5 ema has crossed below the othetr ema's and the Bollinger Band is beginning to open to the downside. The Stochastics has crossed down from the overbought section and is pointing down in the trade zone. There is visual support at 1.0170 that I believe will break but it could also offer a pullback giving traders an opportunity to take a short.



Moving over to the hourly chart we continue to look bearish. We are riding the 5 ema down and the lower Bollinger Band is open and pointing downward. We just hit the Weekly S1 which is causing a slight bounce to the upside but as price hits the hourly 5 i expect it to break the S1 and continue down. I do expect a fight at 1.0177 region since that is last weeks low. Finally, I move down tot he 15 minute chart and like all the other charts it looks bearish. Price is retracing a bit from a bounce off the lower Bollinger Band and I expect it will retrace to the 21 ema which overlaps with the daily S2 pivot at 1.0247 then I expect price to continue downward to the 1.0177 area.