[B]My picks:[/B] Short AUDUSD (pending)
[B]Expertise: [/B]Global Macro, Classic Technical Analysis
[B]Average Time Frame of Trades:[/B] 1 week - 6 months
Prices now stand at resistance marked by the top of a rising channel that has contained price action since October. Negative divergence on the RSI oscillator is hinting that a downward correction is ahead. That said, current candlestick positioning does not show a clear indication of bearish reversal at the moment. Evaluating the broader trend, our bias has shifted to neutral: the slope of the channel suggests the bulls are in control, but taken in the context of the decline since AUDUSD peaked in July could point to a Flag continuation pattern indicative of substantial losses ahead. In either case, I will continue to monitor AUDUSD in the days ahead looking for a short entry opportunity to present itself.
For complete analysis of all the major currencies, please see my latest weekly technical outlook report.