FX.co ★ AUDUSD close to providing a bullish signal.

Green lines- bullish RSI divergence

Red line- resistance trend line

In previous posts we talked about the upside potential in AUDUSD and the possibility of a trend reversal given the warning from the RSI bullish divergence. Trend remains bearish as price continues to trade inside the downward sloping wedge pattern making lower lows and lower highs. AUDUSD ended the week right on top of the red resistance trend line. The first two sessions of next week will be very important. A rejection can bring AUDUSD towards 0.6620 but a break out above 0.6805 could lead to a bigger bounce towards 0.70 and higher.