AUDUSD signals point to pullback
While bullish signals on the week and for Tuesday have been confirmed, yesterday’s signals highlighted the potential for impetus to stall near the June 24 high. This has occurred and although there is no clear bearish reversal pattern, signals are pointing to a profit-taking pullback.
Management and risk description
Allow room to sell rally. Call cautious until the sequence of higher daily lows is ended.
Entry: sell at market and 0.7635, just below yesterday's high.
Stop: 0.7684, a 78% recovery to the losses posted since April's 2016 high.
Target: 0.7530, Tuesday's low and 0.7485, an eight-hour bull trend.
Time horizon: today only.