AUDUSD Potential top

The Australian dollar is starting to consolidate against the US dollar, following numerous upside failures towards the 0.7800 level. A bearish head and shoulders pattern has formed and is warning of a 50 point drop if the AUDUSD pair moves under the 0.7750 level. Negative MACD price divergence is also offering a warning on the one-hour time frame and extends down towards the 0.7700 level.

• The AUDUSD pair is only bearish while trading below the 0.7750 level, key support is found at the 0.7700 and 0.7660 levels.

• The AUDUSD pair is only bullish while trading above the 0.7750 level, key resistance is found at the 0.7800 and 0.7820 levels.