Daily AUD/USD chart highlighting a sharp V-shaped recovery. Source: TradingView
Renko Rocketing Higher
The tape is sending a clear message. On the 0.001-brick traditional Renko chart, price has printed an uninterrupted run of green continuation bricks, reflecting aggressive buying straight off the lows. Price has now broken decisively above the 500 SMA, a level that had capped every rally attempt since late March. At the same time, the Z-Score SMA has stabilized above 1.0, adding statistical support to the strength of the move. There is some bearish divergence on the Z-Score SMA, which can signal some retracement but overall the path of least resistance still points higher for swing traders.
