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AUD/USD Technical Analysis: 2-Month Channel Resistance Broken

AUD/USD Technical Analysis: 2-Month Channel Resistance Broken

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Talking Points:

  • 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!

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

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