AUD/USD Technical Analysis: 2-Month Channel Resistance Broken
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- AUD/USD Technical Strategy: Pending long at 0.7461
- Aussie Dollar breaks 2-month channel top, hints at further gains
- Looking to establish tactical long position below 0.75 figure
The Australian Dollarmay be poised to continue higher after breaking the top of a falling channel that had contained gains against its US counterpart for two months. It remains to be seen whether the move will amount to a correction or if prices are laying the foundation for a longer-term advance.
Near-term resistance is now at 0.7554, the 38.2% Fibonacci expansion, with a daily close above opening the door for a test of the 0.7609-24 area (chart inflection point, 50% level). Alternatively, a reversal back below 0.7461 (channel top resistance-turned-support) targets the 14.6% Fib at 0.7415.
A short AUD/USD trade activated at 0.7423 was stopped out. Getting long looks compelling but the risk/reward setup is skewed against the trade. An order has been set up to enter long at 0.7461. If triggered, the initial target will be 0.7554 with a stop-loss activated on a daily close below 0.7415.
Retail traders are short the Aussie Dollar. Find out here what that hints about coming price moves!
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