AUD/USD Technical Analysis: Down Trend Ready to Resume?
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- AUD/USD Technical Strategy: Pending short at 0.7407
- Aussie Dollar may be resuming down trend vs. USD after brief bounce
- Looking to enter short above 0.74 for improved risk/reward parameters
The Australian Dollar may be readying to resume the down trend set off against its US counterpart in the aftermath of the US presidential election. Prices corrected briefly higher after finding support above the 0.73 figure but upside momentum is already running into roadblocks at chart resistance.
A daily close below the November 21 low at 0.7311 opens the door for a test of the 38.2% Fibonacci expansion at 0.7266. Alternatively, a push above double bottom support-turned-resistance at 0.7443 paves the way for a challenge of the 38.2% Fib retracement at 0.7490.
Prices are bit too close to near-term support to justify selling the pair at current levels from a risk/reward perspective. Instead, a short entry order will be established at 0.7407. If triggered, the trade will initially target 0.7334 and carry a stop-loss activated on a daily close above 0.7443.
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