AUDUSD: Candles Signal Reversal at Channel Top
Strategy: Pending Short
AUDUSD put in a bearish Evening Star candlestick pattern below resistance marked by the top of a rising channel carved out since late June, hinting a move lower is ahead. Negative RSI divergence reinforces the case for a downside scenario. Risk/reward considerations are skewed against selling at current levels however with prices in close proximity to support at 1.0443 and we will remain on the sidelines for now, preferring to see a clear break below the channel bottom as confirmation to get in short.
Daily Chart - Created Using FXCM Marketscope 2.0
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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