AUD/USD Technical Analysis: A Triple Top in the Works?
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- AUD/USD Technical Strategy: Flat
- Bearish candlestick pattern hints at topping below 0.78 once again
- Risk/reward parameters skewed against entering short trade for now
The Australian Dollarput in a Bearish Engulfing candlestick pattern, hinting prices may have topped below 0.78 figure against the US Dollar once again. A reversal lower would mark the second time that prices failed to overcome resistance dating back to in August 2016.
Near-term support is at 0.7659, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a test of the 23.6% level at 0.7604. Alternatively, a push above double top resistance at 0.7760 paves the way for a test of the April 2016 high at 0.7835.
Prices are too close to near-term support to justify entering a short trade from a risk/reward perspective. Either a bounce or a confirmed breach of near-term support is needed to pave the way for an actionable entry opportunity. In the meantime, opting for the sidelines seems most prudent.
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