AUD/USD Technical Analysis: Short Trade Targets Sub-0.71
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Short at 0.7187
- Aussie Dollar in consolidation mode after dropping to three-month low
- Short position targeting test of support below 0.71 figure remains in play
The Australian Dollar is digesting losses in a narrow range after touching the lowest level in nearly three months against its US counterpart. The pair established a top as expected after putting in a bearish Evening Star candlestick pattern above the 0.78 figure.
Near-term support is at 0.7065, the 76.4% Fibonacci retracement, with a break below that opening the door for a challenge of the January 15 low at 0.6827. Alternatively, a reversal above the 0.7212-43 area (61.8% level, February 4 high) confirmed on a daily closing basis sees the next upside barrier in the 0.7300-31 region (May 10 low, 50% Fib).
A short AUD/USD position was activated at 0.7187, initially targeting 0.7065 and carryinga stop-loss to be triggered on a daily close above 0.7243. Profit on half of open exposure will be booked and the stop-loss trailed to breakeven when the first objective has been reached.
Is the Australian Dollar matching DailyFX analysts’ 2016 expectations? Find out here!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.