AUD/USD Technical Analysis: Bearish Reversal Cues Building
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- AUD/USD Technical Strategy: Flat
- Evening Star candlestick pattern, negative RSI divergence hints at topping
- Confirmation of reversal sought to establish actionable short trade setup
The Australian Dollarput in a bearish Evening Star candlestick pattern, hinting a top may be taking shape near double top resistance below the 0.78 figure. Negative RSI divergence warns of ebbing upside momentum and bolsters the case for a downside scenario.
From here, a daily close below the 14.6% Fibonacci retracement at 0.7649 opens the door for a challenge of the 23.6% level at 0.7597. Alternatively, a push above the aforementioned double top at 0.7760 paves the way for a test of the 38.2% Fib expansion at 0.7811.
Compelling confirmation of a bearish reversal is absent for now while near-term series of higher highs and lows set from mid-January remains unbroken. With that in mind, opting to remain on the sidelines until a more actionable selling opportunity emerges seems prudent.
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