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Forex: AUD/USD Technical Analysis – Stop Hit on Short Position

Forex: AUD/USD Technical Analysis – Stop Hit on Short Position

2014-03-07 00:00:00
Ilya Spivak, Head Strategist, APAC
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Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Support: 0.9048 (38.2% Fib exp.), 0.8987 (23.6% Fib exp.)
  • Resistance: 0.9085-98 (Jan 13 high, 50% Fib exp.), 0.9147 (61.8% Fib exp.)

Our short AUD/USD position was narrowly stopped outon a daily close above 0.9085, the January 13 high. This barrier is reinforced by the 50% Fibonacci expansion at 0.9098. A break above the latter barrier exposes the 61.8% level at 0.9147. Alternatively, a reversal below the 38.2% Fib at 0.9048 aims for the 23.6% expansion at 0.8987.

Prices are too close to relevant resistance at this point to justify a long position on risk/reward grounds. On the other hand, attempting to re-enter short without a defined downward reversal signal seems premature. We will stand aside for now and monitor the pair for new entry opportunities.

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dailyclassics_aud-usd_body_Picture_12.png, Forex: AUD/USD Technical Analysis – Stop Hit on Short Position

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.

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