AUD/USD Technical Analysis: Exiting Short Aussie Position
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- AUD/USD Technical Strategy: Flat
- Morning Star Candlestick Pattern, Trend Line Break Hints at Upswing Ahead
- Profit Booked on Short Trade from 0.7214, Waiting for Another Short Entry
The Australian Dollar may be carving out a bottom against its US counterpart after prices put in a bullish Morning Star candlestick pattern. The pair found support above the 0.69 figure afterrecoiling from trend line resistance capping gains since mid-May.
Near-term resistance is at 0.7033, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis opening the door for a challenge of the 38.2% level at 0.7110. Alternatively, a turn back below the 14.6% Fib at 0.6985 clears the way for a test of the September 4 low at 0.6907.
We entered short AUDUSD at 0.7214 and have since booked profit on half of the trade. Emerging signs of bottoming and the break of near-term trend resistance warns of a larger upswing ahead. With that in mind, we will exit the remainder of the position and wait for another opportunity to re-enter short.
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