AUD/USD
Strategy: Pending Short
Last week we wrote that a bearish AUDUSD reversal may materialize after noting negative divergence on the RSI oscillator. Indeed, the pair put in Dark Cloud Cover reversal pattern ahead of resistance in the 0.9334 – 0.9411 region and turned lower, breaking below resistance-turned-support at the top boundary of a falling channel established from November’s swing high. Unfortunately, as with USDCAD, the speed of the bearish breakout has meant that no viable selling opportunities have been presented from a risk/reward perspective, leaving us sidelined for now. The next layer of support is seen at the falling channel’s mid-line, now at 0.8868.
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