Up the escalator, down the lift shaft typically describes AUD/USD price action: downtrends tend to be short sharp brutal moves compared to uptrends. We highlight this behaviour because AUD/USD is on the cusp of throwing out several major bearish signals and the close tonight could very likely be a negative catalyst for long-term trend followers. EUR/GBP tipped over the edge last month; initial support is at 0.7960 but beyond that we are targeting 0.7300 over the next 12 months.
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Barclays Capital