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
WorldWideMarkets Online Trading