Strategy: Short at 0.9716, Targeting 0.9571
AUDUSD has broken out of a rising channel that had guided the pair higher since the beginning of September, with well-defined negative RSI divergence acting as confirmation. A long-wicked Hanging Man candlestick on the daily chart (not shown) bolsters the case for a downside scenario. We will enter short from here, initially targeting 0.9571 with a stop-loss activated on a daily close above 0.9755. A daily close below the first target will see us move the stop-loss to the break-even point and continue holding short for a move to 0.9444.
AUDUSD Spot (8hr Chart) – Created Using CQG, Prepared by Ilya Spivak
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