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
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
AUD/USD Technical Analysis: Aussie Drops to 2-Month Low

AUD/USD Technical Analysis: Aussie Drops to 2-Month Low

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

Talking Points:

  • AUD/USD Technical Strategy: Pending short
  • Aussie Dollar drops to two-month low, exposes support below 0.73
  • Opting to pass on short position on risk/reward, correlation grounds

The Australian Dollar continued to push lower against its US counterpart, with prices declining to the lowest level in two months. The pair established a top below the 0.79 figure as expected after having put in a bearish Evening Star candlestick pattern.

From here, a daily close below the 61.8% Fibonacci retracement at 0.7212 opens the door for a test of the 76.4% level at 0.7065. Alternatively, a reversal back above the 50% Fib at 0.7331 sees the next significant upside barrier at 0.7450, the 38.2% expansion.

Expectations for 2016 fundamental trends make AUD/USD a compelling proposition. Strong downside momentum over recent days makes setting a meaningful invalidation point challenging however, complicating risk/reward calculations. Furthermore, an already-established NZD/USD short trade marks significantly correlated exposure. With that in mind, opting for the sidelines seems prudent for now.

Check out the latest standings for the FXCM $10k trading contest HERE.

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