Forex: AUD/USD Technical Analysis – Short Trade Making Progress
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- AUD/USD Technical Strategy: Short at 0.90
- Support: 0.8919 (14.6% Fib exp.), 0.8821 (23.6% Fib exp.)
- Resistance: 0.9051-85 (Jan 13 close and high, possible double top)
We entered short AUD/USD last week as the pair formed a bearish Evening Star candlestick pattern, suggesting a double top may be in place in the 0.9051-85 area (marked by the January 13 closing and swing highs). The move downward appears to have begun after a period of indecision, with prices edging toward our first objective at 0.8906 marked by the 14.6% Fibonacci expansion. A daily close below this boundary exposes the 23.6% level at 0.8807.We will manually activate a stop-loss if a reversal upward produces a daily close above 0.9085, thereby invalidating the double top setup.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com