Consider Taking Profits on Long AUDUSD Positions
AUDUSD price, news and analysis:
- Six days ago we argued here that AUDUSD could move higher.
- Now it has, traders long the pair may consider the time right to take profits.
Our trading forecasts for Q3 have been published; you can find them here.
And check out the IG Client Sentiment data to help you trade profitably.
AUDUSD price facing resistance
Back on August 16 we argued here that AUDUSD was well placed to move higher from its level then at 0.7275. Now it has advanced to 0.7364 at the time of writing, traders long the pair might consider closing their positions and taking profits.
From a fundamental perspective, Australian Prime Minister Malcolm Turnbull is reportedly facing an attempt to oust him as party leader.
Technically, the price has reached the 50-day moving average and now faces resistance from both a trendline dating back to late January just above 0.74 and the 100-day moving average at 0.7451.
A correction is therefore possible over the next few days.
AUDUSD Price Chart, Daily Timeframe (January 18 – August 22, 2018)
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.