AUD/USD Technical Analysis: Short Position Now in Play
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- AUD/USD Technical Strategy: Short at 0.9186
- Support:0.9085, 0.8955, 0.8826
- Resistance: 0.9195, 0.9264, 0.9365
The Australian Dollar appears poised to continue lower against the US Dollar after sliding to the weakest level in close to five months. A break below support at the bottom of a falling channel set from mid-June exposes the 38.2% Fibonacci expansion at 0.9085, with a further push beyond that targeting the 50% level at 0.8955. Alternatively, a reversal back above the channel floor – now recast as resistance at 0.9195, opens the door for a test of the 0.9245-64 area marked by a rising trend line set from April and the 23.6% expansion.
A bounce following channel break has made for actionable risk/reward parameters and we will now enter short, initially targeting 0.9085. A stop-loss will be activated on a daily close above 0.9287. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is achieved.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com