akats Posted February 3, 2012 Share Posted February 3, 2012 The 1H AUD/JPY chart shows a market that had double bottomed after rallying above the 81.53 resistance pivot. The 1H RSI kissed 70, reflecting bullish momentum, but the market has since fallen from 81.87. It is now at 38.2% retracement of the latest upswing. If the market is to confirm the bullish breakout from this double bottom, the bulls will have to show resolve by not allowing the market to fall below 81.06(61.8% retracement). Also, if the RSI fails to break below, the bullish momentum is still maintained. The 4H chart shows that the market has been falling after a bull run became overbought and exhausted. After the first swing another could be anticipated. Therefore, if the 1H double bottom fails to hold, the bearish continuation in the short-term in context of a medium term rally is the outlook. This outlook has a swing projection that targets 79.56, where the rising trendline and 200 4H Simple Moving Average would reside. Quote Link to comment Share on other sites More sharing options...
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