AUD/USD session outlook: Eyeing the top of the weekly wedge
I’ve been trading this pattern for the last few months and it’s been pretty good to me so no point in stopping now. These wedge patterns are invariably continuation patterns so we should see a move higher eventually once it breaks out. But with the RBA likely to cut rates again next week, selling rallies in the AUD does seem like a sensible strategy. There is also an obvious stop-loss level now above 1.0635; if that breaks then I’ll switch into bullish mode.
On a shorter-term view, recent daily highs at 1.0480 and 1.0510 should prove quite resilient and should cap price moves on the day. Prior highs at 1.0420 provide the first support level. I’d play this range with a bearish bias.