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AUD/USD Bearish Correction in the Making

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The volatile of the AUD/USD pair continues to be affected by the volatile forex market. The last few weeks has seen a lot of bullish strength in the AUD/USD pair. However, as I demonstrated below, it seems that the pair's bullish run may have run out of steam, and a bearish correction could be underway soon. This might be a good opportunity for forex traders to enter the trend at a very early stage and at a great entry price.

• Below is the daily chart of the AUD/USD currency pair.

• The technical indicators that are used are the Relative Strength Index (RSI), Slow Stochastic and MACD.

• Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.

• Point 3: The MACD indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.

AUD/USD Daily Chart

AUD-USD 11-10-2010

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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