The AUDUSD managed to recover after a big drop caused by equities, Chinese market and Yuan devaluation. As we know, Chinese markets correlate to AUD and a possible loss of competitiveness in Chinese export market is also negative for AUD.
Technically AUDUSD is sitting at POC 0.7005-15 (H3, DPP, 50.0) and it could reject towards 0.6950. The problem is that Equidistant channel is out of sync with price which is caused by a bullish divergence. That could spike the price up towards 0.7040 zone (H4,E89,78.6) and the price should reject towards 0.6950. In order for the price to follow with a bearish trend continuation, the pair should close below 0.6945 (L3 within EQ channel) and a close below should target 0.6911.
At this point it is important to see if the price rejects from POC and POC2 as it is still in a bearish trend.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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