To receive Ilya's analysis directly via email, please SIGN UP HERE
Talking Points:
- AUD/USD Technical Strategy: Short at 0.7735
- Support: 0.7656, 0.7577, 0.7498
- Resistance:0.7777, 0.7814, 0.7912
The Australian Dollar launched a recovery against its US namesake having declined as expected after putting in a Bearish Engulfing candlestick pattern. Near-term resistance is in the 0.7754-77 area, marked by the 23.6% Fibonacci expansion and a falling trend line, with a break above that on a daily closing basis exposing the 14.6% level at 0.7414. Alternatively, a turn below the 38.2% Fib at 0.7656 clears the way for a challenge of the 50% expansion at 0.7577.
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).
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
