AUD/USD Technical Analysis – Critical Resistance Below 0.94
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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: 0.9361 (channel top), 0.9408 (May 14 high)
The Australian Dollar fell as expected against its US counterpart after prices took out the bottom of a rising channel set from late January. A rebound back above 0.93 appears corrective for now. Near-term support is at 0.9201, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 0.9041. Falling channel resistance is at 0.9361, followed by the May 14 high at 0.9408.
We entered short AUDUSD at 0.9328, targeting0.9201 as the 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.