AUD/USD in trouble – 21 Dec

AUD/USD topped just below 1.06 last week. Sellers finally showed up and defended this crucial level successfully. The pair is trading just above 1.04 right now.

Currently there is danger for a potential triple top at 1.06 (August, September and December highs). Triple tops are very bearish. A loss of the 1.02 level will be the all decisive factor confirming the top.

Also, the pair is testing the uptrend line starting with the October low. Buyers will likely show up at current levels for a brief rally.

We maintain a neutral position on AUD/USD waiting for it to exit the 1.02/1.06 range of the last 5 months. A big move will follow the range penetration.