AUD/USD Price Analysis: Under pressure after Tuesday's bearish close
- AUD/USD's daily chart shows a bearish reversal candlestick pattern.
- Key indicators on the 4-hour chart also suggest trend reversal.
AUD/USD is trading near 0.6942 at press time, representing a 0.26% decline on the day.
The pair fell by over 0.86% on Tuesday, engulfing the preceding trading day's 0.76% rise. The bearish engulfing pattern validates the overbought or above-70 reading on the relative strength index and suggests a temporary top has been made above 0.70.
Additionally, the 4-hour chart shows a bearish divergence of the relative strength index (RSI).
The pair could test the ascending 10-day simple moving average (SMA) at 0.6875 during the day ahead. A close under that level would open the doors to the 200-day SMA at 0.6662.
The bearish engulfing pattern seen on the daily chart would be invalidated if the pair finds acceptance above 0.7043 (Tuesday's high).
Daily chart
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Trend: Bearish