AUD/USD Technical Analysis: Rebound Stalls at Trend Line
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- AUD/USD Technical Strategy: Short at 0.7058
- Australian Dollar Stalls at Trend Line Resistance Having Soared AfterStrong Jobs Data
- Short Trade Remains in Play, Aiming for Renewed Push Lower Toward the 0.69 Figure
The Australian Dollar is edging lower having tested trend line resistance guiding the move lower since mid-October against its US namesake. The pair launched sharply higher after a strong set of employment figures dented RBA rate cut expectations but prices failed to overturn the near-term bearish bias.
Near-term trend line resistance is at 0.7134, with a break above that on a daily closing basis clearing the way for a test of a horizontal pivot at 0.7199. Alternatively, a move below the November 10 low at 0.7016 opens the door for a challenge of the 0.6902-07 zone, marked by the September 4 bottom and the 38.2% Fibonacci expansion.
We sold AUDUSD at 0.7058, aiming for the September 4 low at 0.6907. A stop-loss will be activated on a daily close above the 0.72 figure. We will book half of the position and trail the stop-loss to breakeven once the first target is hit.
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