AUD/USD Technical Strategy: Short at 0.90
Support: 0.8906 (14.6% Fib exp.), 0.8807 (23.6% Fib exp.)
Resistance: 0.9051-85 (Jan 13 close and high, possible double top)
We entered short AUD/USD last week as the pair formed a bearish Evening Star candlestick pattern, suggesting a double top may be in place in the 0.9051-85 area (marked by the January 13 closing and swing highs). The move downward appears to have begun after a period of indecision, with prices edging toward our first objective at 0.8906 marked by the 14.6% Fibonacci expansion. A daily close below this boundary exposes the 23.6% level at 0.8807.We will manually activate a stop-loss a reversal upward produces a daily close above 0.9085, thereby invalidating the double top setup.