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The Australian dollar played nicely with yesterday’s bias for an initial bounce ahead of its next leg lower. Yesterday’s doji respected the 200-day EMA, so another small bounce is due. A bullish divergence on RSI (2) has formed on the 4-hour chart, and the prior two candles closed back above the weekly pivot point, following false breaks of it. So today’s bias is a repeat of yesterdays; I suspect another bounce could be due – even if the risk of a break below the 200-day EMA remains. US yields put up a better show than the US dollar yesterday, so I am not convinced the USD correction higher has fully played out.

Bulls may want to seek dips towards the weekly pivot point for a move towards 0.6620. Although it remains up in the air as to whether there is enough appetite for it to simply break above the 4-hour bearish engulfing candle initially, given the lack of news in Asia today.

[ATTACH=full]172703[/ATTACH]

<blockquote data-quote="Bailxtrader" data-source="post: 1269981" data-attributes="member: 89756">The Australian dollar played nicely with yesterday’s bias for an initial bounce ahead of its next leg lower. Yesterday’s doji respected the 200-day EMA, so another small bounce is due. A bullish divergence on RSI (2) has formed on the 4-hour chart, and the prior two candles closed back above the weekly pivot point, following false breaks of it. So today’s bias is a repeat of yesterdays; I suspect another bounce could be due – even if the risk of a break below the 200-day EMA remains. US yields put up a better show than the US dollar yesterday, so I am not convinced the USD correction higher has fully played out. Bulls may want to seek dips towards the weekly pivot point for a move towards 0.6620. Although it remains up in the air as to whether there is enough appetite for it to simply break above the 4-hour bearish engulfing candle initially, given the lack of news in Asia today. [ATTACH=full]172703[/ATTACH]</blockquote>

[QUOTE="Bailxtrader, post: 1269981, member: 89756"] The Australian dollar played nicely with yesterday’s bias for an initial bounce ahead of its next leg lower. Yesterday’s doji respected the 200-day EMA, so another small bounce is due. A bullish divergence on RSI (2) has formed on the 4-hour chart, and the prior two candles closed back above the weekly pivot point, following false breaks of it. So today’s bias is a repeat of yesterdays; I suspect another bounce could be due – even if the risk of a break below the 200-day EMA remains. US yields put up a better show than the US dollar yesterday, so I am not convinced the USD correction higher has fully played out. Bulls may want to seek dips towards the weekly pivot point for a move towards 0.6620. Although it remains up in the air as to whether there is enough appetite for it to simply break above the 4-hour bearish engulfing candle initially, given the lack of news in Asia today. [ATTACH=full]172703[/ATTACH] [/QUOTE]

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