We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
Gold
Mixed
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • Asia Pacific Equities Update: Nikkei 225 (-0.19%), Shanghai Composite (+0.12%), ASX 200 (+0.52%), KOSPI (+0.28%)
  • My trading video for today: 'Dollar or Dow: Which Faces the Biggest Impact from the Fed Decision, Forecasts?' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/11/Dollar-or-Dow-Which-Faces-the-Biggest-Impact-from-the-Fed-Decision-Forecasts.html?CHID=9&QPID=917719 https://t.co/K0zruCw1qy
  • Market positioning hints that NZD/USD may turn higher as the AUD/USD extends its near-term drop ahead of the Fed, UK General Election and the December 15 US-China tariff deadline $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/12/11/NZDUSD-Rate-May-Rise-as-AUDUSD-Price-Falls-on-Trader-Bets.html?CHID=9&QPID=917702 https://t.co/j1d3kkVfEf
  • Philippine keeps CPI assumption through 2020 at 2%-4%, latest estimates on 2020-2022 GDP growth at 6.5% to 7.5% -BBG $USDPHP #PHP #BSP
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Gold: -0.04% Silver: -0.18% Oil - US Crude: -0.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/LgsPNfcKsp
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.05% 🇪🇺EUR: 0.01% 🇨🇭CHF: -0.01% 🇨🇦CAD: -0.05% 🇬🇧GBP: -0.15% 🇳🇿NZD: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OY4a8ADSNd
  • Missed this week's session on IG Client Sentiment? Check out the recording on YouTube below! - https://t.co/89A37fRLyg
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.16%, while traders in US 500 are at opposite extremes with 77.31%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/MkBuM9u61U
  • On the first day of holiday movies, John McClane had to say, "welcome to the party and yippee-ki-yay"
  • #NZDJPY Technical Outlook: Bearish Correction Ahead? https://www.dailyfx.com/forex/market_alert/2019/12/11/NZDJPY-Technical-Outlook-Bearish-Correction-Ahead.html
AUD/USD Technical Analysis: Aussie Drops Most in 4 Weeks

AUD/USD Technical Analysis: Aussie Drops Most in 4 Weeks

2016-02-29 08:31:00
Ilya Spivak, Sr. Currency Strategist
Share:

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Aussie Dollar drops most in 4 weeks, breaks below key trend line support
  • Risk/reward considerations argue against entering short position for now

The Australian Dollar moved sharply lower against its US namesake, dropping back below the 0.72 figure and yielding the largest daily drop in four weeks. Prices broke through trend lien support guiding the rebound since mid-January, hinting the longer-term down trend may be resuming.

From here, a daily close below the 38.2% Fibonacci expansion at 0.7046 paves the way for a test of the 50% level at 0.6980. Alternatively, a move back above the 23.6% Fib at 0.7127 sees the next layer of resistance at 0.7178, the 14.6% expansion.

We are keen to sell AUD/USD in line with our 2016 fundamental forecast. The available trading range is too narrow to justify entering at trade at current levels from a risk/reward perspective however. With that in mind, we will continue to stand aside and wait for a better-defined opportunity to present itself.

Are DailyFX analysts buying or selling AUD/USD in 2016? Find out here!

AUD/USD Technical Analysis: Aussie Drops Most in 4 Weeks

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.