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- AUD/USD Technical Strategy: Short at 0.90
- Support: 0.8906 (14.6% Fib exp.), 0.8807 (23.6% Fib exp.)
- Resistance: 0.9051-85 (Jan 13 close and high, possible double top)
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.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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