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AUDUSD with a major long-term sell signal

ByAlpari Research & Analysis
AuthorTomasz Wisniewski
Published 12/10/2017, 09:41 PM
Updated 05/14/2017, 06:45 AM

Tax bill, infrastructure initiative, strong job numbers in the US, all that is helping the USD in the past few days and should continue to support the American Dollar in the nearest future. Dollar had one of the best weeks in the 2017 and it does not look like we are about to stop. We are not talking here about the main pair – EURUSD, where the Greenback is paired against another strong currency – euro. More bearish potential we can see for example on the AUDUSD, which will be our focus in this analysis.


Last week was crucial here and the price created a long-term sell signal. On Thursday, the pair broke the long-term up trendline (pink), which technically ended the positive sentiment towards the AUD. It all started with a smaller bearish flag formation (blue) and a mid-term down trendline (black). Flag was showing us that there was no real intention in bouncing from the trendline and that the sellers are getting for an attack. Mid-term down trendline was just making sure that the lower lows and highs scheme is continued.


The sell signal is on as long as the price stays below the combination of: orange horizontal resistance (0.755) and two trend lines mentioned above. The first potential target is the 0.733 so lows from the November 2016 and May 2017. We still have around 180 pips to that level, which makes this situation a great mid-term investment opportunity. AUDUSD Daily

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