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

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.