AUD/USD Technical Analysis: Bearish RSI divergence

  • The AUD/USD hourly chart shows a bearish price-relative strength index (RSI) divergence.
  • The bearish setup on the hourly chart adds credence to rejection at downward sloping (bearish) 50-candle moving average (MA) on 4-hour chart and descending (bearish) 10-day MA and indicates scope for a drop to 0.74.

Hourly chart

Spot Rate: 0.7422

Daily High: 0.7444

Daily Low: 0.7419

Trend: Bearish

Resistance

R1: 0.7444 (10-day MA)

R2: 0.7475 (May 29 low)

R3: 0.7543 (bearish 50-day MA)

Support

S1: 0.7399 (5-day MA)

S2: 0.7345 (June 21 low)

S3: 0.7319 (May 2017 low)

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