AUD/USD Technical Analysis: Three-Month Uptrend Broken
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- AUD/USD Technical Strategy: Pending Short at 0.7597
- Aussie Dollar breaks three-month trend support vs. US counterpart
- Short entry order set, looking for improved risk/reward parameters
The Australian Dollar has broken rising trend line support guiding prices higher since late May against its US namesake, hinting the long-term down trend is resuming. The pair marked a top with the formation of a bearish Evening Star candlestick pattern below the 0.78 figure and found fuel for a breakdown in hawkish comments from Fed Chair Janet Yellen.
Near-term support is at 0.7496, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a challenge of the 50% level at 0.7415. Alternatively, a reversal above the 0.7597-0.7647 area (23.6% Fib, June 24 high) paves the way for a retest of the August 11 high at 0.7760
Prices are too close to near-term support to justify entering short at market from a risk/reward perspective. With that in mind, a short entry order has been established to sell the pair at 0.7597. If triggered, the position will initially target 0.7496 and carry a stop-loss activate on a daily close above 0.7647.
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