Instrument: AUD/USD
Time frame: D1
Our expectations: Downtrend and correction to diagonal and horizontal resistance. Engulfing candle at level resistance gives us signal for new down movement.
Alternative scenario: If the price breaks over the diagonal resistance, the negative scenario will be dismissed and we can look for a long position with SL around 0.7415.
Comments: Strong down movement, lower bottoms. AUD is under pressure because of sliding iron ore price. Iron ore is the main source of income from Australian export.
Price action signal: Engulfing candle at levels of resistance
DeM(14) - In zone of overbought, but it's not turning down - positive signal
SL: 0.7455
Trader Bozhidar Arabadzhiev
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