AUD USD in Position to Form Reversal Top

Weakness in the U.S. equity markets is indicating a possible top in the AUD USD. A close below .8730 could trigger the start of a 2 to 3 day break.

Weakness in the U.S. equity markets is indicating a possible top in the AUD USD. 

The current chart formation suggests that traders backed off the Aussie as it pierced the former top at .8775. 

The sell-off from the .8788 high has put this market in a position to post a closing price reversal top.  The ideal set-up will be a lower close, a close below the opening and a close below the mid-point of today’s range.

This makes .8730 the key number at the end of the day.  A close below .8730 will indicate a possible top.  A follow-through break during tomorrow’s session will confirm the top and could set up a minimum 2 to 3 day break to .8689.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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