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AUDUSD: Attention Turns to 0.7608 Next Week

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For about a month the AUDUSD was incredibly resilient, even stubborn. The pair spent 18 trading days stuck in a range of just 130 pips.

The chart below is the same one I posted over the weekend. In that commentary, I mentioned the confluence of resistance that had developed between 0.7700 and 0.7760.

I also stated the following:

Based on Friday’s close, I’m inclined to think that last week’s high at 0.7740 was a significant one. And perhaps it’s one that will stand for some time.

This was my conclusion based on the way last week closed in concert with the confluence of resistance in the 0.7700/60 region.

So far it seems the high at 0.7740 will stand for at least one more week.

From here I’ll be watching for a return to the 0.7608 handle next week. Any sell signal from this area could offer an attractive selling opportunity.

The next key support level comes in at 0.7520. This area has served as a pivot since the October 2016 low. A close below this level would pave the way for a move to the September 2016 low near 0.7450.

I remain short here per my initial entry at 0.7730. The trade and my reasoning behind it were shared with members last Thursday as the AUDUSD was selling off from 0.7740.

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AUDUSD new resistance

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