News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Breaking news

UK to Announce Vaccine Passports and WFH Guidance in Move to Plan B

AUD/USD Technical Analysis: One-Month Uptrend Broken

AUD/USD Technical Analysis: One-Month Uptrend Broken

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • AUD/USD Technical Strategy: Short at 0.7608
  • Aussie Dollar rejected at 15-month trend resistance
  • One-month uptrend broken, hinting at deeper losses

The Australian Dollar looks vulnerable to deeper losses against its US counterpart after prices broke trend line support guiding the one-month uptrend. The pair turned lower after putting in a bearish Evening Star candlestick pattern below resistance capping gains since April 2016.

From here, a daily close below the 38.2% Fibonacci expansion at 0.7552 opens the door for a test of the 0.7502-17 area (50% level, May 23 high). Alternatively, a move back above the 0.7613-36 zone (23.6% Fib, June 14 high) paves the way for another test of trend line resistance, now at 0.7711.

Risk/reward parameters appeared acceptable and a short position has been entered at 0.7608, initially targeting 0.7552. A stop-loss will be activated on a daily close above 0.7636. Profit on half of the trade will be booked and the stop-loss moved to breakeven upon hitting the first objective.

What do retail traders AUD/USD buy and sell decisions hint about the price trend? Find out here!

Please add a description for the image.

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

DISCLOSURES