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Talking Points:
- AUD/USD Technical Strategy: Short at 0.7735
- Support: 0.7656, 0.7577, 0.7498
- Resistance:0.7754, 0.7814, 0.7912
The Australian Dollar declined as expected against its US counterpart after prices put in a Bearish Engulfing candlestick pattern. A daily close below the 38.2% Fibonacci expansionat 0.7656 exposes the 50% level at 0.7577. Alternatively, a reversal above the 23.6% level at 0.7754 opens the door for a test of 0.7814, the intersection of falling trend line resistance and the 14.6% expansion.
Our pending order to short AUDUSD at 0.7735 has been triggered and the trade is now in play, initially targeting 0.7656. A stop-loss will be activated on a daily close above 0.7814. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is reached.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
