AUD/USD Technical Analysis – Rebound Seen as Corrective
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- AUD/USD Technical Strategy: Short at 0.9328
- Support: 0.9201 (channel floor, 23.6% Fib exp.), 0.9041 (38.2% Fib exp.)
- Resistance: 0.9362 (channel top), 0.9408 (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. A rebound from support above the 0.92 figure appears corrective for now while the series of lower highs and lows set off in early April remains intact. Breaking trend channel resistance at 0.9362 exposes the May 14 high at 0.9408. Alternatively, a turn below 0.9201 – marked by the channel floor and the 23.6% Fibonacci expansion, targets the 38.2% level at 0.9041.
We sold AUDUSD at 0.9328, 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.