AUD/USD Technical Analysis: Holding Short Amid Consolidation
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- AUD/USD Technical Strategy: Short at 0.6900
- Australian Dollar Digesting Losses After Breaking September Low vs. US Dollar
- Short Position at 0.69 Remains in Play, Aiming for Decline Below 0.68 Figure
The Australian Dollar is locked in consolidation mode against its US namesake after posting the largest daily drop in four months. The movetook out September’s swing bottom, hinting that the longer-term down trend is back in play. Prices’ inability to break back above former support on multiple retests bolsters the case for a downside scenario.
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.
We entered short AUD/USD at 0.6900, initially targeting 0.6758. A stop-loss is set to trigger on a daily close above 0.6950. We will book half of the trade and adjust the stop-loss to the breakeven level when prices touch the first target.
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