AUD/USD Technical Analysis – Range Below 0.93 Holding
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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: 0.9300, 0.9408-10 (channel floor, May 14 high)
The Australian Dollar declined as expected against its US counterpart after prices took out support at the bottom of a rising channel set from late January. Support comes in at 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 0.9408-10 area, marked by the May 14 high and the channel floor.
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.
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.