AUD/USD Technical Analysis: Major Trend Change in Progress?
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- AUD/USD Technical Strategy: Pending short at 0.7598
- Australian Dollar breaks key support trend, hints at trend change
- Corrective rebound sought to enter short with better risk/reward
The Australian Dollar looks may be embarking on a major trend change after breaking through support guiding prices higher since January. The currency sank in the aftermath of the US presidential election and near-term fundamentals trends may mean that more of the same is ahead.
From here, a daily close below the 38.2% Fibonacci retracement at 0.7536 opens the door for a test of the 50% level at 0.7462. Alternatively, a move back above the 23.6% Fib at 0.7629 paves the way for another challenge of double top resistance at 0.7760.
Risk/reward considerations argue against taking a short trade with prices sitting squarely at chart support. With that in mind, an entry order has been established to sell at 0.7598 in the event of a corrective bounce. If triggered, the trade will initially target 0.7536 and have a stop-loss activated on a daily close above 0.7629.
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