AUD/USD Technical Analysis: Short Trade Setup Established
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- AUD/USD Technical Strategy: Pending Short at 0.7735
- Support: 0.7656, 0.7577, 0.7498
- Resistance:0.7754, 0.7814, 0.7912
The Australian Dollar turned lower against its US namesake as expected after producing a Bearish Engulfing candlestick pattern. Near-term support is at 0.7656, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis exposing the 50% level at 0.7577. Alternatively, a turn above the 23.6% level at 0.7754 clears the way for a challenge of 0.7814, the intersection of falling trend line resistance and the 14.6% expansion.
Prices are too close to support to justify entering short at market from a risk/reward perspective. With that in mind, we will establish a pending order to sell the pair at 0.7735. If triggered, the trade will initially target 0.7656 and carry a stop-loss activated on a daily close above 0.7814.
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Daily Chart - Created Using FXCM Marketscope
--- 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.