AUD/USD Technical Analysis – Aussie Dollar Sold Sub-0.94
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- AUD/USD Technical Strategy: Short at 0.9328
- Support: 0.9201 (23.6% Fib exp.), 0.9041 (38.2% Fib exp.)
- Resistance: 0.9358 (channel floor), 0.9408 (May 14 high)
The Australian Dollar looks vulnerable to deeper losses after prices broke below support at the bottom of a rising channel set from late January. Sellers now aim to challenge the 23.6% Fibonacci expansion at 0.9201, with a daily close below that exposing the 38.2% level at 0.9041. The channel floor, now at 0.9358, has been recast as near-term resistance. A move back above that initially targets the May 14 high at 0.9408.
We will now enter short in line with our fundamental outlook, aiming for 0.9201 as an initial objective. A stop-loss will be activated on a daily close above 0.9408. We will take profit on half of the trade at the first target and trail the stop-loss to the breakeven level.
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.