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Chart to Watch: AUD/USD – Ominous Signs Could Drag the Aussie Down Under

Published 01/12/2012, 11:13 PM
Updated 05/18/2020, 08:00 AM
AUD/USD
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GUID
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STAR
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Key Technical Themes:

* Elliot Wave analysis shows Aussie just completed wave-B up (blue) and is currently in wave-i down (gray) of overall wave-C down (blue) – This implies a move towards the 1.0145 prior low (at minimum) should be seen over the coming sessions

* Saw an RSI Bearish Divergence into the 1.0375/80 highs

* Formed a Shooting Star into the highs which was then followed by a Bearish Engulfing pattern shortly thereafter – These candlesticks imply further downside is ahead

* Price remains temporarily supported by the hourly 144 & 169 EMA’s, however while below 13-hour sma the bias remains lower as it should cap the immediate upside

* RSI has broken below corresponding trendline support IN ADVANCE to price (Leading Indicator)

* Sees trendline support from the Jan. 9th low near 1.0305

Ultimately, I’ll continue to look to fade any remaining Aussie strength as long as AUD/USD remains below the key 200-day sma and 61.8% retracement (using the July high & Oct. low) at 1.0415 and 1.0435 respectively.
<span class=AUD/USD Daily" title="AUD/USD Daily" width="622" height="761">

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