Bearish Signals Strengthen on AUD/USD with Multiple Sell Setups

The AUD/USD is currently showing multiple layers of bearish signals, making it a strong candidate for short positions. The first noticeable formation is a head and shoulders pattern, marked by an orange rectangle, with the black neckline already broken to the downside. This neckline was also tested as resistance, and the price has since bounced lower, further confirming the sell sentiment.

Adding to the bearish outlook is a false breakout above a yellow horizontal resistance, marked by the green rectangle. The price briefly moved above this level but quickly reversed, reinforcing the long-term downtrend. False breakouts typically signal a strong rejection of higher levels, pointing to further downside pressure.

With a combination of the head and shoulders pattern, false breakout, and the confirmed neckline rejection, the outlook for the AUD/USD remains negative. These layers of technical setups suggest that sellers are firmly in control, and the pair is likely to continue its decline.

Source: https://www.axiory.com/analytics/technical-analysis/bearish-signals-strengthen-on-aud-usd-with-multipl