Skip to Content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
AUD/USD Technical Analysis: Short Trade Setup Sought

AUD/USD Technical Analysis: Short Trade Setup Sought

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Aussie Dollar carves out top below 0.77, turns downward as expected
  • Waiting for improved risk/reward parameters to enter short position

The Australian Dollar turned lower against its US counterpart as expected, with prices now trying to make headway below the 0.75 figure. Sellers have breached rising trend line support guiding the move higher since the beginning of the month, hinting a larger down move may be in progress.

Near-term support is now at 0.7479, the 23.6% Fibonacci retracement, with a break below that on a daily closing basis opening the door for a test of the 38.2% level at 0.7354. Alternatively, a reversal back above the 14.6% Fib at 0.7556 paves the way for another challenge of the March 18 high at 0.7680.

We are looking to enter short AUD/USD on signs of long-term down trend resumption in line with our 2016 fundamental outlook. Prices are too close to support to justify taking the trade at current levels from a risk/reward perspective however. We will stand aside for now, waiting for a more attractive opportunity to present itself.

Losing money trading AUD/USD? This might be why.

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

DISCLOSURES