AUD/USD Technical Analysis: Exiting Short Aussie Trade
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- AUD/USD Technical Strategy: Flat
- Support:0.9324-44, 0.9223-45, 0.9085
- Resistance: 0.9460, 0.9504, 0.9600
The Australian Dollar is attempting to edge lower against its US namesake as expected after putting in a bearish Dark Cloud Cover candlestick pattern. Support lines up in the 0.9324-44 area, marked by a horizontal pivot in play since March and the 14.6% Fibonacci expansion. A break below that on a daily closing basis exposes the 0.9223-45 zone, bracketed by a range bottom and the 38.2% level. Alternatively, reversing above support-turned-resistance at 0.9422 opens the door for a challenge of the July 1 high at 0.9504.
We sold AUDUSD at 0.9414. The trade has made little progress since being initiated and we will take this opportunity to exit the position near the breakeven level, waiting for another opportunity to re-enter the trade in the days ahead.
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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.