AUD/USD Technical Analysis – Threatening to Expose 0.94
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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 declined as expected against its US counterpart after prices took out the bottom of a rising channel set from late January. A rebound from support above the 0.92 figure is seen as corrective while the series of lower highs and lows set off in early April remains intact. Breaking below 0.9179-0.9201 area, marked by a falling channel floor and the 23.6% Fibonacci expansion, targets the 38.2% level at 0.9041.Alternatively, a move above channel resistance at 0.9366 exposes the May 14 high at 0.9408.
We entered short AUDUSD at 0.9328, initially targeting 0.9201. A stop-loss has been set to activate on a daily close above 0.9408. We will book profit on half of the trade at the first objective and trail the stop-loss to breakeven on the remainder of the position.
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.