Australian Dollar Bullish Case!

A few days ago I posted a forex video overview of several currencies and the AUD/USD forex pair was one of them. At the time of that video on the daily AUD/USD candle chart we had 2 reversal bars with long tails. Today we have another very interesting bar formation that has just closed. If you note on the chart bellow we have a bullish pin bar that has a very strong positive close. There is a nice tail on the bar indicating a very strong rejection of the monster 1.0200 price pivot zone. If you also take note the Relative Strength Index has posted a very nice positive divergence. If you have ready my blog for any length of time you know I love to see divergence formations because they are an indication of possible trend reversals. Bullish momentum will be confirmed IF we get a break of the high of that reversal rejection candle. Having said all that, there are many supporting factors for a bullish scenario for the Aussie currency. We have a very strong support, nice bar and a very clear RSI signal that a reversal may be imminent. Enjoy!