AUDUSD remains in a bearish trend making lower lows and lower highs. Price is now trading around 0.7485 and there is potential of price reaching as low as 0.7435.However as the RSI suggests, the downtrend is weakening.
Blue lines - expected path
AUDUSD is expected to reverse to the upside soon. Price is making new lows but the RSI is not following. This is a bullish divergence. If price makes a new lower low and the RSI makes another higher low, then the chances of a reversal to the upside will increase dramatically. If price reaches 0.7435 area I believe this will be a good risk reward area to initiate new long positions with a potential to bounce towards 0.76.
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