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AUD/USD has been in the spotlight in recent webinars, as the pair continues to work on building a bear-flag formation spanning back over a month now. Recently, it was rejected at a cross-road of resistance in the 7650/75-area, helping further along the pattern.
Aussie is currently trying to make its way higher off the lower parallel, and may indeed rally in the very short-term. But look for any rise to be short-lived as renewed weakness sets in and an eventual break takes shape below the rising trend-line off the underside of the pattern.
In the event of a trigger, the first target will be the May low near 7400, but a lower-low towards 7300 and worse will be targeted. For now, it’s just a set-up on the radar, so we’ll update with more specific details when the time is right should we see this promising set-up go from scenario to reality.
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AUD/USD Daily Chart (Bear-flag, awaiting trigger)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX