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AUD/USD Poised to Challenge 0.92 to Threaten Bearish Continuation

AUD/USD  was consolidating this week after a dip from 0.9409 to 0.9208.


(audusd 4H chart, 5/28)

As we get into the 5/28 session, we are seeing some USD-strength. The AUd/USD in the 4H chart retains the bearish momentum as the RSI reading held below 60 and is falling below 40. The moving averages in the 4H chart are also aligned in a bearish mode.

0.92 - Moment of Truth
The 0.92 level will be a key barrier for AUD/USD if it is to turn bearish outside on the daily chart.


(audusd daily chart, 5/28)

You can see that the Aussie has already broken below the 2014 rising trendline. It looks poised to test the 0.9085-0.91 area, which is a previous resistance, and includes the 200-day SMA.

Bullish scenario:
On the other hand, A return above 0.93, especially if the daily RSI holds above 40, will revive the bullish continuation outlook, with 0.94, 0.9460 in sight.

To contact the reporter of this story, email Fan Yang at fan@forexminute.com
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