AUD/USD Technical Analysis: Upswing to Yield Short Setup
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- AUD/USD Technical Strategy: Flat
- Australian Dollar Continues to Recover, Hits Three-Week High vs. US Counterpart
- Symmetrical Triangle Chart Pattern Hintsat Continuation of Long-Term Down Trend
The Australian Dollar continues to push higher against its US namesake, rising to the highest level in three weeks and working to clear a path above the 0.73 figure. Price action remains locked within a symmetrical Triangle chart formation however, hinting the overall bias continues to favor the downside.
Confirmation of a break above the 38.2% Fibonacci expansion at 0.7280 on a daily closing basis paves the way for a test of 0.7336, the intersection of the Triangle top and the 50% level. Alternatively, a move back below the 0.7185-7210 area (23.6% Fib, horizontal pivot) opens the door for a challenge of 0.7097 (December 17 low, Triangle floor).
The long-term AUD/USD trend continues to favor the downside. Furthermore, the Triangle setup is typically indicative of continuation, which in this case carries bearish implications. With that in mind, we will look to any on-coming gains as corrective and wait for a selling opportunity to present itself. In the meantime, we remain flat.
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