AUD/USD Rallies Within Broader Downtrend

The below is the daily chart of the AUDUSD.  The currency pair had a strong day yesterday charting a bullish engulfing pattern. However, the EMAs remain in a bearish stack i.e. the green 5-day EMA is below the orange 13-day EMA, and the orange 13-day EMA is below the black 34-day EMA. The EMAs are also showing angle and separation. Furthermore, the RSI(9) is still under 50, which is indicative of an underlying bearish momentum. Therefore, yesterday’s price action may be classified as a rally within a broader downtrend, which may provide an opportunity to short the AUDUSD.


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