AUD/USD to Pullback in a Bearish Continuation Swing

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AUD/USD to Pullback in a Bearish Continuation Swing

The AUD/USD is in a bearish continuation swing, but the 11/20 US session is starting with traders selling the USD across the board. The AUD/USD is looking to pullback, but we should remain bearish and be ready for sellers on the rally.

In November, AUD/USD price corrected from a fresh low on the year at 0.8540 to 0.8795. It has since fallen back signaling bearish continuation. Today, there is some USD-sell-off across the board and AUD/USD might pull back. In that scenario, look for sellers around 0.87. A break above 0.87 might not shelve the bearish outlook but we should expect sellers at this key juncture, in which case, pressure would return to the 0.8540 low, with risk of breaking to 0.85. A break above 0.89 will be needed to shelve the bearish outlook, and possibly open up a bullish one.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.