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Talking Points:
- AUD/USD Technical Strategy: Short at 0.7735
- Support: 0.7596, 0.7554, 0.7513
- Resistance:0.7715, 0.7743, 0.7912
The Australian Dollar is digesting losses against its US counterpart having fallen as expected after forming a Bearish Engulfing candlestick pattern. A daily close below the 38.2% Fibonacci expansionat 0.7596 exposes the 50% level at 0.7554. Alternatively, a reversal above support-turned-resistance at 0.7715 opens the door for a test of channel-top resistance at 0.7743.
We sold AUDUSD at 0.7735 and subsequently booked profit on half of the position. The remainder of the position remains open to capture any further downward momentum. The stop-loss has been trailed 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
