Forex: AUD/USD Technical Analysis – Short Position Still in Play
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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)
We sold the Australian Dollar last week after prices put in 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). Prices corrected higher in the final hours of trade on Friday but the overall setup remains valid. As such, we will continue to hold short, 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.