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Shooting Star Reversal Threat

AUDUSD TECHS
  • RES 4: 0.6818 High May 10 and key resistance
  • RES 3: 0.6767 3.0% 10-dma envelope
  • RES 2: 0.6733 76.4% retracement of the May 10 - 31 bear leg
  • RES 1: 0.6717 High Jun 07
  • PRICE: 0.6711 @ 16:18 BST Jun 8
  • SUP 1: 0.6613 20-day EMA
  • SUP 2: 0.6567/6458 Low May 31 and the bear trigger
  • SUP 3: 0.6403 76.4% of the Oct - Feb bull cycle
  • SUP 4: 0.6387 Low Nov 10 2022

The AUDUSD bull cycle that started on May 31 remains in play - for now. Resistance at the 50-day EMA has been cleared The average intersects at 0.6653 amd the break signals scope for a stronger recovery towards 0.6733, 76.4% of the downleg in May. On the downside, a reversal lower is required to refocus attention on 0.6458, the May 31 low. Note that Wednesday’s price pattern is a shooting star candle - a possible bearish reversal warning.

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