• Dow pattern- lower tops and lower bottoms (T1-B1-T2-B2).
• Price is currently trading BELOW the downtrend line.
The downtrend is confirmed by the cross of MA10 below MA20.
• Higher highs on price charts and lower highs on oscillator chart. ( Divergence).
• is below the equilibrium level- 50.
Therefore, we will recommend SHORT POSITIONS for the no position holders on AUD/USD . Take profit-1 at 0.7240 (S1) the B2 and take profit-2 at 0.7144 (S2) the 161.8% Fib. Stop loss should be a bit above the R1 and the downtrend line, thus the stop loss is at 0.7470.
For Short-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.