AUD/USD Technical Analysis: Looking to Sell Above 0.76
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- AUD/USD Technical Strategy: Pending short at 0.7603
- Aussie Dollar breaks 2016 down trend, eyes support below 0.75 figure
- Looking to enter short AUD/USD on a corrective bounce toward 0.76
The Australian Dollar may be resuming the long-term down trend against its US namesake after prices broke support capping losses for most of 2016. Prices turned lower as expected after putting in a bearish Evening Star candlestick pattern below the 0.79 figure.
Sellers now aim to challenge the 38.2% Fibonacci retracement at 0.7450, with a break below that on a daily closing basis opening the door for a test of the 50% level at 0.7331. Alternatively, a move back above trend line support-turned-resistance at 0.7563 paves the way for a challenge of a horizontal pivot barrier at 0.7680.
Prices are too close to support to justify entering short from a risk/reward perspective. Instead, an entry order will be established to sell AUD/USD at 0.7603. If triggered, the trade will initially target 0.7450 and carry a stop-loss activated on a daily close above 0.7680.
What do DailyFX analysts expect from AUD/USD in 2016? See our forecast here!