This currency pair is having an overly extended bull run at the moment. As we can see, RSI(14) is indicating an overbought reading. This currency previously managed to survive the 88.0 round number and manage to go even higher. But take a look at these aspects:
1. A strong rejection on the 89.10 territory. The same rejection happened on 20th and 27th of July, 23rd of October 2017, and if we pull a fibonacci retracement all the way from 21st September 2017 high down to 28th of November 2017 low, we can see the current price is hitting the 23.60% retracement.
2. If you switch the timeframe to 4H, you can clearly see there is a RSI(14) divergence observed in this currency pair.
3. AUDUSD is making a doji in the daily. This indicates that bull's exhaustion for OZ dollar and bear is potentially going to take over it (signalling that OZ dollar is started to get weaken).
1. A strong rejection on the 89.10 territory. The same rejection happened on 20th and 27th of July, 23rd of October 2017, and if we pull a fibonacci retracement all the way from 21st September 2017 high down to 28th of November 2017 low, we can see the current price is hitting the 23.60% retracement.
2. If you switch the timeframe to 4H, you can clearly see there is a RSI(14) divergence observed in this currency pair.
3. AUDUSD is making a doji in the daily. This indicates that bull's exhaustion for OZ dollar and bear is potentially going to take over it (signalling that OZ dollar is started to get weaken).