FxWirePro: AUD/USD back-to-back bearish patterns in the consolidation phase of major trend, can bears form triple top?

On weekly terms, ever since the bears have managed to reject the previous upswings at stiff resistance at 0.7750 levels, the current prices have gone below 7EMA, subsequently, we traced out shooting star candle at 0.7627 levels.

As prices dropped at 0.7750 levels, the triple top formation seems to be likely on this timeframe with top 1 at 0.7835, top 2 at 0.7778 and top 3 at 0.7749 levels.

Moreover, back to back shooting star patterns have occurred at monthly terms to evidence more slumps but the major trend now stuck in the range, the current prices are attempting to break below 21EMAs.

As a result, it is now most likely to bring in more downswings below 21EMA as well.

These bearish patterns shrink previous bullish momentum (you could see stern bullish candles with big real bodies).

Although shooting star to evidence more slumps but the major trend now stuck in range (with upper range at 0.7818 and lower range 0.7160 levels).

But for now, the trend is bearish biased as the current prices are attempting to break below 21EMAs on monthly terms as well.

Most importantly, both leading oscillators on both time frames are slightly indecisive and signaling overbought pressures.

As you could see, the major trend has been sliding below through sloping channel, but on the contrary, the consolidation phase that has begun from October 2015 still seems robust. Current prices are sensing resistance at 0.7761 levels, hovering around channel resistance (see this month’s candle), any breach above channel resistance to boost up this consolidation phase.

Well, on hedging grounds, we advocate shorting futures contract of near-month expiries to arrest downside risks towards 0.7500, 0.7421 or even 0.7306 levels cannot be ruled out upon breach of 1st two targets.

Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.