- The bullish divergence of the 14-hour relative strength index (RSI) and a rise to 0.7219 on the back of an above-forecast Aussie Q2 GDP reading, though encouraging, is not enough to call a bullish reversal.
- Only a convincing move above 0.7221 (falling trendline + 100-hour MA) would confirm the sell-off from the Aug. 28 high of 0.7362 has ended at 0.7157 and could yield a rally to 0.7270 (200-hour MA).
- On the downside, acceptance below the previous day’s low of 0.7157 would signal a continuation of the sell-off.
Hourly Chart
Spot Rate: 0.7190
Daily High: 0.7319
Daily Low: 0.7172
Trend: Neutral
R1: 0.7202 (Aug. 15 low)
R2: 0.7238 (Aug. 24 low)
R3: 0.7270 (200-hour MA)
Support
S1: 0.7157 (previous day’s low)
S2: 0.7136 (76.4% Fib R of 2016 low/2018 high)
S3: 0.71 (psychological support)
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