AUD/USD Rejected at Channel Top: Bearish Reversal in Play?

The Australian dollar to US dollar pair (AUD/USD) is at a critical technical juncture on the daily chart, with signs pointing toward a potential bearish reversal.

Since April, the pair has been moving steadily inside a channel up formation, defined by red trendlines. This week, the price reached the upper boundary of the channel and reacted sharply — a classic technical resistance.

Yesterday’s session printed a shooting star candle, characterized by a long upper wick, signaling a clear rejection from the upper trendline. Today’s follow-through is confirming that rejection, with the current candle turning decisively bearish.

If today’s candle closes near or below the open of the previous long white candle (highlighted within a yellow rectangle), it would complete an evening star formation — a three-candle bearish reversal pattern with long-term implications.

The setup is clear:

• If the evening star completes, it will trigger a technical sell signal.

• On the other hand, a bounce from current levels and a recovery by the daily close would keep the bullish channel intact.

All eyes are on today’s close. This could be the start of a deeper correction for AUD/USD — or another false alarm in an otherwise resilient trend.

Source: https://www.axiory.com/analytics/technical-analysis/aud-usd-rejected-at-channel-top-bearish-reversal-i