AUDUSD – Reversal signal on formation of Diamond Top pattern
The Aussie stands at the back foot on Wednesday and dipped to 0.7940, after Tuesday’s trading ended in red, following repeated upside rejection and failure to close above important 0.8000 barrier.
Upbeat Australian building data, released earlier today, had no significant impact on the pair’s near-term action which remains in red.
Diamond top pattern is forming on daily chart and signaling reversal, which requires break below pattern’s support line at 0.7935 to generate stronger bearish signal.
Sustained break lower would open way towards next pivotal support at 0.7877 (Fibo 38.2% of 0.7572/0.8065 upleg), loss of which would confirm reversal.
The pair eyes US jobs report and RBA Monetary Policy Statement for stronger signals.
Res: 0.7974; 0.8000; 0.8042; 0.8065
Sup: 0.7935; 0.7900; 0.7877; 0.7846