For intermediate-term fundamental and technical outlook for major markets/currencies, check out the recently released DailyFX 2Q Forecasts.

Barring a strong reversal between now and the close of today’s session (~5 hours from now), AUD/USD will post its second bearish reversal in the past five sessions. The reversal comes from an upper parallel, a failure to overcome a late-March swing-high, and the 200-day MA.

Placing a stop above today’s high by 20 pips (7832) should keep it out of harm’s way should the trade work out. A push above today’s high would bring into play a larger rebound. Looking lower, the January 2016 trend-line is the targeted objective. Given the distance from entry to stop and from entry to target, the risk/reward on this set-up is a sufficient ~1:2.

Shorter-term minded traders looking at intra-day time-frames can use the path of least resistance as a guide for making tactical maneuvers for as long as the broader trade outlook remains intact.

Updates will be provided on this idea and others weekly, in the trading/technical outlook webinars held on Wednesday and Friday .

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AUD/USD Daily Chart (Bearish Reversal)

AUDUSD daily chart with bearish reversals at resistance

Resources for Forex & CFD Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

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