2013 saw the AUDUSD currency pair plummeting over 1,600 pips. Will bears continue stomping into 2014? We think so.
The chart below paints the AUDUSD MT4 daily chart, using Ichimoku analysis, with 3 moving averages plotted over the chart.
Technical indicators used on this graph suggest a good number of bearish proponents:
- Prices are below the 52 period exponential moving average (EMA) in black
- The faster moving 5 period EMA in green is below the slower moving 20 period EMA in red
- Kumo clouds in orange and purple are painted across the chart, and these serve as resistance zones above prices. The purple downward sloping future kumo looks to be thickening, offering greater resistance
It looks like clear skies ahead for the bears with no kumo shadows behind prices. Prices will remain in bearish territory unless the 5 period EMA crosses above the 20 period EMA, prices go above the 52 period EMA, and prices break above the Kumo cloud.
Written By: Streetpips.com
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