Forex Trade Signals and Setups Dec. 15th
AUDUSD – Looking Tentative
After getting hammered for the last 7 days, the Aussie has formed a decent price action bounce off the .9879 swing lows which you can see was a key level in the chart below acting both as support and resistance for the prior swing moves. The back-to-back 4hr rejection off this level had some initial gusto, but failed at the 20ema which means sellers either got back in or added new shorts at the moving average pullback.
Short term bears have their line in the sand both for upside rallies and for further confirmation the trend will or will not continue should it break the swing lows sub .9875. Bulls may take some positions here and any break + close above the 20ema will inspire confidence in them.
One thing to consider is with institutions pulling out of the market and volumes getting lower, it’s possible this +USD movements have been institutions scaling back their EUR holdings not wanting to be long going into the holidays for fear of further problems in the eurozone not being handled until after the new year, thus not wanting to be caught long, therefore exiting existing longs giving the USD a short term boost. Food for thought.
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