First weeks of new year on AUDUSD were quite bullish. Pair found local low in 0.7160 area and since that without break was going up. Is it time for correction?


Although daily chart is cut by bearish candles, on weekly chart we cannot see many signs of bears fighting. Bullish problems started in last few weeks when there were longer wicks on the candles. We still cannot see any bearish intervention on the screen.

Despite that we can feel depreciation on AUDUSD. This pair has bigger problems with creating new highs. Lack of test of upper band of bullish channel is also a sign of bullish weakness.

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Third signal pointing possible correction on the chart is divergence between price and RIS indicator. It is seen really well on daily chart. Stronger decreases during today’s session and lack of test of upper band can be initial to deeper correction. In last few days we have seen false sell signals so it is worth to wait with short on AUDUSD until Monday.

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