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