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AUD/USD With A Bearish Reversal

ByAdmirals
Published 03/28/2013, 07:57 AM
Updated 01/31/2022, 02:45 AM
AUD/USD
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GUID
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RED
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CTPC
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The AUD/USD was in a good shape until two days ago, when the price formed a head and shoulders pattern near the resistance of the channel up formation (yellow area near the upper green line). During the night, bears managed to break the blue neck line and before the European session opened, they managed to use this line as support for the bearish movement. The sell signal was definitely confirmed when bears managed to break the channel up support (lower green line). The downswing continued, even when traders reached the 1.0447 support (lower red line). The bearish movement stopped once traders got to the area near 1.0420 (lower green area), which was an important level mid March. From that point on, sellers decided to capture the profits from that impressive downswing and formed a small rising wedge (green lines), which was technically used as a trend continuation pattern and resulted in a further downswing, aiming for 1.0420 again.
<span class=AUD/USD" title="AUD/USD" width="615" height="283">
The closest resistance is the short-term bearish trendline (red) and the next one is 1.0447. As long as the price stays below those levels, chances for another bearish downswing increase, as sellers are putting more pressure on the 1.0420 support by the minute.

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