After a night of USD weakness resource currencies are higher. The recent strength of AUD/USD is attributable to a combination of factors, including USD weakness and a recovery in commodity prices, especially oil and iron ore. This strength flies in the face of RBA interest rate cuts and low levels of inflation.
The good news for AUD bears is the elevated levels for establishing shorts. And the four hour chart is setting up nicely.
The arrows on the chart point to a double top formation. If the pair drops below the support at 0.7670 the MACD will likely cross, giving a sell signal. I’m an initial seller at 0.7665. I’ll add to the short if it drops below the near low at 0.7637
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