The AUD/USD pair rallied in today’s trading session but later met resistance at 0.7245 and formed bearish engulf candlestick pattern. Intra-day bias remains on the upside in the medium picture if 0.7245 resistance is broken as long as 21 and 55 EMA remains crossed upward on the 1 hour time-frame. Also SSRC oscillator on 1 hour chart indicates more bullish momentum is expected in the pair.
However in the short term picture, we will be experiencing some sell retracement in the pair as price actions on the 1 hour time-frame shows a short term sell opportunity could evolve in the pair with a bearish engulf pattern and also bearish indication on SSRC oscillator on the 15 minutes time-frame. It simply shows that the pair is in an over-bought state as all sessions (Sydney, Asia, London and U.S) today bought the pair.
Am expecting a test of the daily central pivot before buying commence in the pair. As i said earlier wait for a break of 0.7245 resistance before buying the pair or buy on the dips.