AUD/USD: This uptrend has been relentless and unforgiving to any who attempt to fade it. Still, with the daily RSI finally crossing back below 70 and the market having finally reached parity, any additional upside beyond these major psychological barriers should be limited, with the greater risk for a material pullback. The other week, we said that aggressive players could short at 1.0000, and the trade has since paid off quite well. Despite the relative strength, the market has also now officially ended a sequence of 8 consecutive positive closes, to provide additional warning signals for a major bearish reversal. As such, we look for any additional rallies to be well capped on a close basis below the 1.0000 handle.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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