FX.co ★ torp.paris | AUD/USD

#AUD/USD H4 Australian Dollar - US Dollar. The selected asset on the current chart is currently showing a clear bearish sentiment, which can be easily identified using the Heiken Ashi candle indicator, demonstrating a smoother and averaged value of price quotes, unlike traditional Japanese candles. The use of Heiken Ashi facilitates the process of technical analysis and, at the same time, improves the accuracy of trading decisions. The Triangular Moving Average (TMA) linear channel indicator, illustrating current support and resistance lines based on Moving Averages, also helps in trading by showing the relevant boundaries of the currency pair movement. To finalize signal filtering and make a trading decision, the RSI oscillator is used, showing overbought and oversold zones of the asset.

On the provided chart of the studied instrument, at the moment, a situation can be observed where the candles are colored red, indicating a southern price movement. Market quotes have crossed above the upper boundary of the linear channel (blue dashed line), but after reaching the maximum point, they bounced off it and turned back down towards the middle line of the channel (yellow dashed line). The filtering signal basement indicator RSI (14) also confirms the sell signal, as it aligns with choosing a short position - its curve is currently pointing downwards and is far from the oversold level. In light of the above, only sales can be considered relevant, so we open a short position, expecting the instrument to move towards the lower boundary of the channel (red dashed line) located at the price level of 0.63921.