AUD/USD Technical Analysis – Short Trade Remains in Play
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- AUD/USD Technical Strategy: Short at 0.9403
- Support:0.9324, 0.9201, 0.9041
- Resistance: 0.9436, 0.9460, 0.9608
The Australian Dollar may be carving out a top against its US namesake after producing a bearish Dark Cloud Cover candlestick patternbelow the 0.95 figure. The first layer of support comes in at 0.9324. A daily close below this barrier exposes the 23.6% Fibonacci expansion at 0.9201. Alternatively, a reversal above resistance at 0.9436, the June 12 high clears the way for a challenge of the April 10 high at 0.9460, followed by rising channel bottom support-turned-resistance at 0.9608.
We entered short AUDUSD at 0.9403, initially targeting 0.9324. A stop-loss is set to activate 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.