AUD/USD Technical Analysis: Topping Below 0.78 Figure?
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AUD/USD Technical Analysis: Topping Below 0.78 Figure?

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Talking Points:

  • AU D/USD Technical Strategy: Flat
  • Aussie Dollar breaks range top, rises to 3-month high vs. US counterpart
  • RSI divergence hints at downturn but actionable confirmation still absent

The Australian Dollar vaulted to a three-month high after a languishing in a choppy range the against its US counterpart for nearly two weeks. Negative RSI divergence warns of ebbing upside momentum and hints a turn downward may be brewing ahead.

A daily close below the 14.6% Fibonacci expansion at 0.7685 opens the door for a retest of the February 7 low at 0.7606. Alternatively, a push above the 0.7733-60 area (23.6% Fib, double top) sees the next upside barrier at 0.7811, the 38.2% expansion.

RSI divergence is not sufficient as a standalone reversal signal and calls for confirmation with a more tangible sign of topping. With that in mind, monitoring from the sidelines rather than taking up a short position seems most prudent for the time being.

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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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