AUD/USD Technical Analysis: Targeting Support Below 0.76
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- AUD/USD Technical Strategy: Short at 0.7735
- Support: 0.7577, 0.7498, 0.7401
- Resistance:0.7656, 0.7754, 0.7814
The Australian Dollar turned lower against its US namesake as expected after producing a Bearish Engulfing candlestick pattern. Near-term support is at 0.7577, the 50% Fibonacci expansion, with a break below that on a daily closing basis exposing the 61.8% level at 0.7498. Alternatively, a turn above the 38.2% level at 0.7656 clears the way for a challenge of the 23.6% expansion at 0.7754.
We entered short AUDUSD at 0.7735 and subsequently booked profit on half of the position. The rest of the trade remains open to capture any further downside. The stop-loss has been adjusted to the breakeven level (0.7735).
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com