By: Doug Rosen
The Aussie has been very bullish but it looks to me like this uptrend is beginning to stall out a bit. The candle formation on the 4 hour is a reversal formation, the Stochastics is in the overbought zone and beginning to cross back down.
Looking at the hourly the 5 ema has crossed below the 13, 21 and 55 and the lower Bollinger Band is pointing down. There could be a bit of support around the 1.0575 area since that is a 50.0 Fib of the recent rise up but everything else is pointing down. 15 Minute chart is also looking very bearish to me at this time. 1.0565 is the Monthly Central Pivot Point so I will be watching for a break at this level before I would consider a short.
I would wait for it to fall down to 1.0535 then to pullback to 1.0555 at which point I will take a short. I would look to take this short all the way down to the 1.0500 region but expect a little fight around 1.0540 before price continues on its way down. If it bounces at 1.0541I expect it to bounce up to 1.0550 then to continue downward to 1.0500 - 1.0485