AUD/USD Technical Analysis: Bounce Stalls at Trend Resistance
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- AUD/USD Technical Strategy: Short at 0.7605
- Aussie Dollar rally conspicuously stops on trend resistance
- Second half of short trade in play for downward resumption
The Australian Dollar seems to have fallen short of a convincing upside breakout against its US counterpart after storming higher from support above the 0.74 figure. The rally conspicuously stopped squarely on resistance establishing the series of lower highs and lows set from the March swing high.
From here, a break above trend line resistance and subsequent close above the 23.6% Fibonacci expansion at 0.7612 opens the door for a challenge of the 38.2% level at 0.7698. Alternatively, a reversal back below the 14.0% Fib at 0.7559 paves the way for a retest of the April 12 low at 0.7473.
The short AUD/USD position activated at 0.7605 met its initial objective at 0.7524 and profit on half of the trade has been taken. Remaining exposure will be in play to capture renewed downward momentum. The stop-loss has been adjusted to the breakeven level.
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