AUD/USD: 1-hour
Trend traders, unite! AUD/USD has been moving below descending trend line on its 1-hour forex chart and looks ready to make a pullback to the resistance area. At the same time, a bearish divergence has formed, as the pair made lower highs while stochastic drew higher highs. Stochastic hasn’t crossed down from the overbought zone yet, which means that the retracement is still in play and using the Fib tool on the latest swing high and low shows that the 50% level lines up with the trend line. A larger correction could last until the 61.8% level, but a break past this area could indicate a reversal. Note that the 100 SMA is treading below the longer-term 200 SMA, confirming that the selloff is likely to carry on.
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