We noted in our weekly technical outlook report that “AUDUSD has put in a decisive Bearish Engulfing and is now testing the last layer of support at the bottom of a rising channel that has guided the pair since mid April.” Prices triggered a short entry with today’s close below support at 0.7896. From here, we will initially target a decline to the previous swing bottom at 0.6949. A stop-loss will be activated on a daily close above the 06/03 wick high at 0.8269.
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