AUD/USD Technical Analysis: Rising Toward July Swing High
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- AUD/USD Technical Strategy: Short at 0.9414
- Support:0.9441, 0.9398, 0.9324
- Resistance: 0.9460-76, 0.9504-11, 0.9554
The Australian Dollar has launched a swift recovery against its US counterpart following the release of second-quarter CPI figures. Prices are testing resistance in the 0.9460-76 area, marked by the April 10 high and the 50% Fibonacci expansion. A break above that on a daily closing basis exposes the 0.9504-11 region bracketed by the July 1 high and the 61.8% level. Alternatively, a reversal back below the 38.2% Fib at 0.9441 opens the door for a challenge of the 23.6% expansion at 0.9398.
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.