Forex Technical Analysis, AUD/USD Daily Forecast June 1, 2016
Technical Analysis – The NZD/USD pair broke higher during the day on Tuesday, clearing the top of the hammer that formed on Monday. While this is normally a very bullish sign, there is a significant amount of resistance above at the 0.73 level, and also the 0.74 handle. A shooting star or some type of exhaustive candle after a rally is reason enough to start selling, and as a result that’s what I’m waiting for as I don’t really see any other play, with perhaps the one exception being a break down below the bottom of the hammer on Monday which of course would show a pickup up momentum to the downside.
In Other View Point – Bounce of strong support
AUDUSD broke out of its consolidation area around the large support that was previously resistance. We are now heading higher and if today closes higher, at least current levels and more, more bullish action can be seen till at least 0.7475 region. RSI and Stoch is well directed and not overbought on H4 and Daily. It can be a bumpy ride though. A move back down and especially a break of the trend line would give way to sub 0.7 region.