AUD/USD Technical Analysis: Bearish Reversal Cues Building
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AUD/USD Technical Analysis: Bearish Reversal Cues Building

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Talking Points:

  • AU D/USD Technical Strategy: Flat
  • Evening Star candlestick pattern, negative RSI divergence hints at topping
  • Confirmation of reversal sought to establish actionable short trade setup

The Australian Dollar put in a bearish Evening Star candlestick pattern, hinting a top may be taking shape near double top resistance below the 0.78 figure. Negative RSI divergence warns of ebbing upside momentum and bolsters the case for a downside scenario.

From here, a daily close below the 14.6% Fibonacci retracement at 0.7649 opens the door for a challenge of the 23.6% level at 0.7597. Alternatively, a push above the aforementioned double top at 0.7760 paves the way for a test of the 38.2% Fib expansion at 0.7811.

Compelling confirmation of a bearish reversal is absent for now while near-term series of higher highs and lows set from mid-January remains unbroken. With that in mind, opting to remain on the sidelines until a more actionable selling opportunity emerges seems prudent.

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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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