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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
AUD/USD Technical Analysis: Aussie Drops Most in a Month

AUD/USD Technical Analysis: Aussie Drops Most in a Month

Ilya Spivak, Head Strategist, APAC

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

Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Aussie Dollar posts largest decline in a month vs. US counterpart
  • Waiting for improved risk/reward parameters to enter short trade

The Australian Dollar turned sharply lower against its US counterpart following a brief recovery, posting the largest daily drop in a month. The move has overturned the series of higher highs and lows set from last month’s low, hinting the dominant down trend may be resuming.

From here, a daily close below horizontal shelf support at 0.7383 exposes the 0.7311-19 area (November 21 low, 38.2% Fibonacci expansion). Alternatively, a reversal above double bottom support-turned-resistance at 0.7443 paves the way for a retest of the 38.2% Fib retracement at 0.7490.

Prices are too close to near-term support to justify entering short from a risk/reward perspective. Opting for the sidelines seems most prudent for the time being, waiting for the pair to offer an actionable opportunity to enter short in line with the dominant directional bias.

See the schedule of upcoming webinars and join us LIVE to follow the financial markets!

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

DISCLOSURES