AUD/USD Technical Analysis: Bearish Trend May Be Resuming
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- AUD/USD Technical Strategy: Short at 0.7420
- Aussie Dollar signals down trend vs. US counterpart is resuming
- Trend line break paves the way for a move below the 0.74 figure
The Australian Dollar may have resumed the down trend launched in early November after prices broke support guiding a corrective upswing from last month’s lows. The currency suffered the largest drop in two weeks in the aftermath of the FOMC monetary policy announcement.
Near-term support is at 0.7346, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis paving the way for a challenge of the 50% level at 0.7291. Alternatively, a reversal back above the 23.6% Fib at 0.7415 opens the door for a retest of the 14.6% expansion at 0.7457.
An entry order to sell AUD/USD at 0.7420 was activated and the position is now in play, initially targeting 0.7346. A stop-loss will be activated on a daily close above 0.7457. Profit on half of the trade will be booked and the stop adjusted to breakeven when the first objective is met.
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