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AUDUSD: Candles Hint a Top May Be Set

Strategy: Pending Short

AUDUSD put in a Bearish Engulfing candlestick pattern below resistance at 1.0352, the 23.6% Fibonacci retracement level, hinting a move lower is ahead. Negative RSI divergence reinforces the case for a downward scenario. Risk/reward considerations argue against entering short here however with prices so close to support at 1.0105, the 38.2% Fib, and we will hold off until a better setup presents itself.

AUDUSD_Candles_Hint_a_Top_May_Be_Set_body_Picture_5.png, AUDUSD: Candles Hint a Top May Be Set

Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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