Bearish setup for AUDUSD

AUDUSD is making new higher highs but the RSI is not following. Eventually price will break down and a push lower towards 0.69 at least. That is why we prepare for such a scenario and we prefer to be bearish than bullish AUDUSD at current point in time.

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Green lines - bearish divergence

Red line - support

AUDUSD is trading around 0.7170 and we see consecutive higher highs and higher lows. Support is at 0.7110 area. We prefer to be slightly bearish at current levels as we expect a major pull back. Breaking below the red line support at 0.7110 will confirm our bearish view and we will add to our short position. The RSI is not making higher highs producing a bearish divergence. We are bearish. We look for a pull back towards 0.69 at least.

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