AUD/USD Technical Analysis – Channel Resistance in Focus
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- AUD/USD Technical Strategy: Short at 0.9328
- Support: 0.9179-0.9201 (channel floor, 23.6% Fib exp.), 0.9041 (38.2% Fib exp.)
- Resistance: 0.9368 (channel top), 0.9408 (May 14 high)
The Australian Dollar fell as expected against its US namesake after prices pierced the bottom of a rising channel set from late January. Near-term support is in the 0.9179-0.9201, marked by a falling channel floor and the 23.6% Fibonacci expansion.A break below that on a daily closing basisexposes the 38.2% level at 0.9041. Channel top resistance is now at 0.9368. A move above that clears the way for a challenge of the May 14 high at 0.9408.
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