AUD/USD Technical Analysis: Short Entry Set Above 0.94
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- AUD/USD Technical Strategy: Pending Short at 0.9414
- Support:0.9305, 0.9223, 0.9181
- Resistance: 0.9422-47, 0.9507, 0.9602
The Australian Dollar fell as expected against its US namesake after prices put in a Dark Cloud Cover candlestick pattern. Support is in the 0.9305-24 area, marked by a horizontal pivot in play since March and the 23.6% Fibonacci retracement. A daily close below that targets the 0.9181-223 zone, bracketed by a range bottom and the 38.2% level. Alternatively, a turn above support-turned-resistance in the 0.9422-47 region clears the way for a test of the 38.2% Fib expansion at 0.9507.
Prices are too close to support to justify selling Aussie at current levels from a risk/reward perspective. We will establish an entry order to short the pair at 0.9414. If triggered, the trade will initially target 0.9324 with a stop-loss activated on a daily close above the July 1 high at 0.9504.
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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.