The Australian Dollar corrected higher as expected after prices put in a bullish Piercing Line candlestick pattern. The pair has now produced a bearish Evening Star candle formation, hinting a double top may be in place in the 0.9051-85 area (marked by the January 13 closing and swing highs).

Risk/reward considerations allow for a short position and we will sell the pair from here, initially targeting the 14.6% Fibonacci expansion at 0.8906. A break below this boundary exposes the 23.6% level at 0.8807. A stop-loss has been set to trigger on a daily close above 0.9085.

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