Focus
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AUDUSD: Following Up on Wednesday’s Sell Signal
On Tuesday we discussed how the AUDUSD rally was in jeopardy below 0.7620. This area is the intersection of former trend line support from the June 2nd low as well as several highs from last month. It’s also the 23.6% Fibonacci retracement when measuring from the May low at 0.7328 to the June high at 0.7711. Shortly after Tuesday’s commentary, the pair retested the new resistance area at 0.7620. Despite their best efforts, buyers were unable to push the price above the area on a 4-hour closing basis. This formed a bearish pin bar as noted in the chart below. If you were watching for a sell signal at the time, ... (full story)