The AUDUSD charted a spinning top yesterday. This is a candle of uncertainty. Bulls tried to take price up and bears tried to take price down. Neither was successful, with AUDUSD closing fairly flat on the day.
The resilient US core CPI is pressuring the currency pair.
AUDUSD is dropping today, threatening to close in its bearish channel between the lower blue and red bands. A close below yesterday's low will also be bearish. It will show that a peak is present. This may lead to the next down-leg.
The stochastic will yield further information. It is turning. A move to its lower quintile (blue arrow) will connote an underlying bearish momentum and a maintenance of this level will confirm as much.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.