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.