AUD/USD Technical Analysis: Waiting to Re-Enter Short Trade
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- AUD/USD Technical Strategy: Flat
- Short Position Triggers Stop-Loss as Prices Reclaim Foothold Above 0.72 Figure
- Waiting to Re-Enter Short in line with Long-Term Down Trend After Bounce Fizzles
The Australian Dollar returned to the offensive against its US counterpart, with prices rebounding to reclaim a foothold above the 0.72 figure. The move higher comes after the pair found support at a rising trend line that has capped losses and guided the Aussie higher since early September.
A daily close below 0.7089, the intersection of aforementioned trend line support and the 23.6% Fibonacci expansion, opens the door for a test of the 38.2% level at 0.6906. Alternatively, a reversal above the 23.6% Fib retracement at 0.7204 paves the way for a challenge of a horizontal pivot at 0.7283.
Our entry order to short AUDUSD at 0.7165 was triggeredlate last week but the trade has now stopped out on a daily close above 0.7204. The dominant long-term trend continues to favor the downside however. With that in mind, we will stand aside for now and wait for the upswing to yield another selling opportunity.
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