AUD/USD Technical Analysis: Short Trade Fails to Trigger
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- AUD/USD Technical Strategy: Flat
- Support:0.8581, 0.8479, 0.8377
- Resistance:0.8659, 0.8787, 0.8887
The Australian Dollar declined against its US namesake as expected after prices put in a Bearish Engulfing candlestick pattern. Near-term support is at 0.8581, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.8479. Alternatively, a turn above support-turned-resistance at 0.8659, the January 2014 low, opens the door for a challenge a formerly broken rising trend line at 0.8787.
Prices declined before picking up our short entry order at 0.8785 and we will now scrap the setup until a different opportunity presents itself. As it stands, prices are too close to support to justify entering short from a risk/reward perspective.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com