AUD/USD Technical Analysis – Looking for Bearish Reversal
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- AUD/USD Technical Strategy: Short at 0.9403
- Support:0.9324, 0.9201, 0.9041
- Resistance: 0.9436, 0.9460, 0.9585
The Australian Dollar may be setting a double top below the 0.95 figure against its US counterpart as prices show a bearish Dark Cloud Cover candlestick pattern. Negative RSI divergence bolsters the case for a downside scenario. Initial support is at 0.9324, with a daily close below that targeting the 23.6% Fibonacci expansion at 0.9201. The first layer of resistance lines up at 0.9436, the June 12 high. A turn above that aims for the April 10 high at 0.9460, followed by rising channel bottom support-turned-resistance at 0.9585.
We sold AUDUSD at 0.9403, initially targeting 0.9324. A stop-loss will be triggered on a daily close above 0.9460. We will book profit on half of the trade and move the stop-loss to breakeven once the first objective is reached.
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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.