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Talking Points:
- AUD/USD Technical Strategy: Short at 0.7735
- Support: 0.7596, 0.7554, 0.7513
- Resistance:0.7715, 0.7754, 0.7912
The Australian Dollar is stalling against its US namesake after dropping as expected following the appearance of a Bearish Engulfing candlestick pattern. Near-term support is at 0.7596, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.7554. Alternatively, a reversal above support-turned-resistance at 0.7715 clears the way for a challenge of channel-top resistance at 0.7754.
We entered short AUDUSD at 0.7735 and subsequently booked profit on half of the position. The rest of the trade remains open to capture any further downside. The stop-loss has been adjusted to the breakeven level (0.7735).
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
