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Talking Points:
- AUD/USD Technical Strategy: Short at 0.9328
- Support: 0.9201 (23.6% Fib exp.), 0.9041 (38.2% Fib exp.)
- Resistance: 0.9300, 0.9381 (channel floor), 0.9408 (May 14 high)
The Australian Dollar dropped to a three-week low against its US namesake having reversed downward as expected after a break of channel support set from January. Sellers now aim to challenge 0.9201, the 23.6% Fibonacci expansion, with a daily close below that exposing the 38.2% level at 0.9041. Alternatively, a move back above the 0.93 figure clears the way for a retest of the channel floor (now at 0.9368) as resistance.
We sold AUDUSD at 0.9328 in line with our fundamental outlook, initially targeting 0.9201. A stop-loss is set to trigger on a daily close above 0.9408. We will book profit on half of the position at 0.9201 and trail the stop-loss to breakeven.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
