Aussie managed to close above 0.80 threshold and new buying lifted it above yesterday's highs briefly in Asia earlier today. However, there is a growing sense that the market has gone too far, and the 4% decline in iron ore prices provided the fodder for the profit-taking that has now pushed the Aussie below yesterday's lows. Although the outside down day needs to be confirmed with a close below $0.7980, it is the kind of reversal pattern we have been anticipating.
The RSI was at multi-year highs and has turned down today. The Slow Stochastics have not confirmed the new highs, leaving a minor bearish divergence in its wake. As the Great Graphic posted above and created on Bloomberg shows, the MACDs are also poised to cross lower from elevated levels.