AUD/USD Technical Analysis: Short Trade Setup Established
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- AUD/USD Technical Strategy: Pending Short at 0.8785
- Support:0.8659, 0.8581, 0.8479
- Resistance:0.8782, 0.8887, 0.8971
The Australian Dollar moved lower as expected against its US counterpart after prices produced a Bearish Engulfing candlestick pattern. A daily close below the January low at 0.8659 exposes the 38.2% Fibonacci expansion at 0.8581. Alternatively, a reversal above trend line support-turned-resistance at 0.8782 opens the door for a challenge support-turned-resistance marked by the March swing low at 0.8887.
Current positioning does not allow for a short position from a risk/reward perspective and we will set up an entry order to sell the pair at 0.8785. If triggered, the position will initially target 0.8659 and have a stop-loss activated on a daily close above 0.8910.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com