AUDUSD: Looking for Channel Break to Sell
AUDUSD edged higher after putting in an Inverted Hammer candlestick above support at the bottom of a rising channel set from late December. Negative RSI divergence in overbought territory recorded as prices set a swing top below the channel’s upper boundary suggests a top may have been set on February 8. Confirmation on a daily close below the channel bottom, now at 1.0657, is needed to make for an actionable sell signal. Near-term resistance stands at 1.0843.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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