AUD/USD Technical Analysis: Short Trade Triggered at 0.69
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- AUD/USD Technical Strategy: Short at 0.6900
- Aussie Dollar Drops Below September Low, Hinting at Down Trend Resumption
- Short Position Now in Play, Initially Targeting a Decline Below the 0.68 Figure
The Australian Dollar resumed the downward push against its US counterpart after brief period of consolidation, issuing the largest daily drop in over four months. Prices have now cleared support marked by the swing bottom set in early September, suggesting the longer-term AUD/USD down trend is resuming.
From here, a daily close below the 50% Fibonacci expansion at 0.6758 opens the door for a challenge of the 61.8% level at 0.6609. Alternatively, a reversal back above support-turned-resistance at 0.6906, the 38.2% Fib, paves the way for a retest of the November 10 low at 0.7016.
Technical positioning appears to be aligning with our fundamental outlook and we will now enter short, initially targeting 0.6758. A stop-loss will be activated on a daily close above 0.6950. We will take profit on half of the position and trail the stop-loss to the breakeven level when the first objective is reached.
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