AUDUSD: Candles Hint a Top May Be Set
Strategy: Pending Short
AUDUSD put in a Bearish Engulfing candlestick pattern below resistance at 1.0352, the 23.6% Fibonacci retracement level, hinting a move lower is ahead. Negative RSI divergence reinforces the case for a downward scenario. Risk/reward considerations argue against entering short here however with prices so close to support at 1.0105, the 38.2% Fib, and we will hold off until a better setup presents itself.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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