AUD/USD: Critical medium-term support by 0.8730 has now been taken out to trigger the formation of a major double top that now projects a fresh wave of declines down towards 0.8000 over the coming weeks. Daily studies are however in the process of bouncing from oversold, so from here, we would not rule out the potential for additional gains. However, any rallies should be well capped by 0.9000 ahead of renewed weakness.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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