AUD/USD Technical Analysis: Three-Month Uptrend Broken
To receive Ilya's analysis directly via email, please SIGN UP HERE
- AUD/USD Technical Strategy: Short at 0.7605
- Aussie Dollar breaks 3-month trend support, hinting at bearish reversal
- Short position initially looking for sustained descent below 0.76 figure
The Australian Dollar broke through trend support defining the move higher since the beginning of the year, hinting the longer-term down move may be resuming. The currency topped below the 0.78 figure against its US cousin as expectedafter putting in a Bearish Engulfing candlestick pattern.
Near-term support is now in the 0.7498-0.7524 area (resistance-turned support, 38.2% Fibonacci retracement), with a daily close below that opening the door for a challenge of the 50% level at 0.7455. Alternatively, a turn back above the trend line (now at 0.7616) paves the way for a retest of the March 30 high at 0.7679.
The technical break coupled with appealing risk/reward parameters has led to the triggering of a short position at 0.7605. The trade initially targets 0.7524. A stop-loss will be activated on a daily close above 0.7650. Half of the trade will be closed and the stop-loss moved to breakeven upon hitting the first objective.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.