May 21, 2008 07:17

AUD/USD Technical Analysis – rising channel

Posted In: Technical Analysis
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5-21-08

7:17a GMT – AUD/USD has entered into a rising channel on the 60M charts. We are looking for a buying opportunity at the bottom of the channel or a selling opportunity if the RSI divergence continues. There was a definite RSI divergence between 5/16 and 5/20 price action as the price made a higher high and the RSI made a lower high.

Trading Idea: Look for a drop to the channel bottom and a candlestick entry along with a drop to RSI channel bottom. If the pair rises to the channel top we will look for selling opportunities if the RSI divergence is still there.

Result: +70 pips

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