AUD/USD Technical Analysis: Inching Toward First Target
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- AUD/USD Technical Strategy: Short at 0.9414
- Support:0.9305-24, 0.9223, 0.9181
- Resistance: 0.9422, 0.9492-0.9507, 0.9602
The Australian Dollar fell as expected against its US namesake after prices put in a Dark Cloud Cover candlestick pattern. Near-term 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 at 0.9422 clears the way for a test of the 0.9492-0.9507 region (trend line support-turned-resistance, 38.2% Fib expansion).
We entered short AUDUSD at 0.9414, initially targeting a return to 0.9324. A stop-loss will be triggered on a daily close abovethe July 1 high at 0.9504. We will take profit on half of the trade and move the stop-loss to breakeven on the remainder of the position once the first objective is met.
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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.