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Talking Points:
- 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 declined as expected against its US counterpart after prices put in a Bearish Engulfing candlestick pattern. A daily close below the 50% Fibonacci expansionat 0.7577 exposes the 61.8% level at 0.7498. Alternatively, a reversal above the 38.2% level at 0.7656 opens the door for a test of the 23.6% expansion at 0.7754.
We sold AUDUSD at 0.7735 and subsequently booked profit on half of the position. The remainder of the position remains open to capture any further downward momentum. The stop-loss has been trailed 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
