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Shooting Star Reversal Still In Play

AUDUSD TECHS
  • RES 4: 0.7762 76.4% retracement of the Feb ‘21 - Jan ‘22 downleg
  • RES 3: 0.7716 High Jun 16 2021
  • RES 2: 0.7661/65 High Apr 5 / 2.0% 10-dma envelope
  • RES 1: 0.7519 High Apr 7
  • PRICE: 0.7459 @ 20:02 BST Apr 8
  • SUP 1: 0.7427 Low Aor 7
  • SUP 2: 0.7376 Low Mar 22
  • SUP 3: 0.7351 50-day EMA
  • SUP 4: 0.7283 Low Mar 17

AUDUSD ended last week on a softer note. The pair found resistance at 0.7661, Apr 5 high. The reversal lower highlights a short-term bearish threat and suggests potential for a correction. Note that price activity on Apr 5 confirmed a bearish candle - a shooting star - and the subsequent move lower reinforces this pattern. The 20-day EMA at 0.7450, has been probed. This opens the 50-day EMA at 0.7351. Key resistance is at 0.7661.

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