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Today’s Trading Edge: AUD/USD Bearish Technical Setup

Posted by Edward Moya on Nov 6, 2013 9:49:00 AM

WWM AUDUSD Nov6 2013

Price action on AUD/USD has remained fairly bid since the beginning of August.  After rebounding from the lows of .8847, key selling interest defended the 200-day simple day moving average on October 23rd.  So far this week, a slight rebound in the Australian currency has so far been unable to breakout above the .9550 level.

The hourly chart above displays three potential reversal patterns.  The first pattern is a bearish wedge highlighted in white.  The second is a potential bearish ABCD pattern displayed in red.  The third pattern is a double top pattern displayed with two circles.  If valid, traders may see a downward move towards the .9470 level. 

The Trade: Go short AUS/USD at current price (.9535) with a stop loss at .9563, and a take profit at .9479.  The Risk/Reward Ratio is 1:2. 

 

Edward J. Moya

Technical Strategist

WorldWideMarkets Online Trading

 

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