AUD/USD Technical Analysis: March Swing High Under Fire
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Flat
- Aussie Dollar rallies most in a month, challenges March swing high
- Looking for new setup to re-enter short in line with long-term trend
The Australian Dollar secured a third consecutive day of gain versus its US counterpart, putting in the largest advance in a month. Prices now stand to challenge the March swing high as buyers attempt to clear a path above the 0.78 figure.
A daily close above the 0.7703-23 area (23.6% Fibonacci expansion, March 31 high) opens the door for a test of the 38.2% level at 0.7834. Alternatively, a reversal below the 14.6%Fibat 0.7622 paves the way for a challenge of the 0.7477-0.7511 zone (March 24 low, 23.6% Fib retracement).
Our AUD/USD short trade from 0.7526 was stopped out as prices closed above the 0.76 figure. Our 2016 fundamental forecast calls for downtrend resumption and we are keen to re-enter short but an actionable trade setup is absent at this point. With that in mind, we will stay on the sidelines for now.
Are you making this common mistake trading AUD/USD? Find out here!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.