AUD/USD Technical Analysis: Short Trade Setup Sought
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- 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.