Forex: AUD/USD Technical Analysis – Double Top Possibility Remains
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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 entered short AUD/USD 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). As of now, the pair continues to hover below this barrier, offering no follow-through on reversal or a clear invalidation of its possibility.
On balance, we will continue to hold short for now. The initial objective remains at 0.8906, the 14.6% Fibonacci expansion. Breaking below this boundary on a daily closing basis exposes the 23.6% level at 0.8807. A stop-loss will be activated 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.