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Shooting Star Candle Still In Play

AUDUSD TECHS
  • RES 4: 0.7314 High Jan 13 and a key resistance
  • RES 3: 0.7277 High Jan 20
  • RES 2: 0.7273 2.0% 10-dma envelope
  • RES 1: 0.7249 High Feb 09
  • PRICE: 0.7192 @ 09:23 GMT Feb 17
  • SUP 1: 0.7086/7052 Low Feb 14 / Low Feb 4
  • SUP 2: 0.6968/6963 Low Jan 28 / Low Jul 16, 2020
  • SUP 3: 0.6921 Low Jul 14, 2020
  • SUP 4: 0.6884 0.764 proj of the Oct ‘21 - Dec ‘21 - Jan price swing

AUDUSD reversed lower from last Thursday’s high of 0.7249 into the Monday low of 0.7086. The pullback means the pair has failed to remain above the 50-day EMA and this is seen as an early warning of a possible stronger reversal. Last Thursday’s candle was a shooting star - a bearish signal. A deeper pullback would expose 0.7052, Feb 4 low. A break here would open 0.6968/6963, the Jan 28 and Jul 16, 2020 lows. Clearance of 0.7249 is required to reinstate a bullish theme.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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