AUDUSD was expected to make a new lower low towards 0.7435 where we mentioned in our previous analysis it would be a good spot to go long. Downside was limited and the bullish RSI divergence was an important warning signal. A trend reversal warning. A reversal to the upside was coming.
AUDUSD is now trading at 0.7480. Price made a new lower low as expected and the RSI did not follow as expected. The RSI provided another bullish divergence. That is why we preferred to be bullish when price was making a new lower low. There are high chances that the low is in and trend has changed to bullish. However confirmation will come when price breaks above the recent high of 0.76. Until then there is still danger of making a new lower low. We are cautiously bullish.
