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- AUD/USD Technical Strategy: Short at 0.7970
- Aussie Dollar attempting to launch recovery from familiar range support
- Near-term trend structure continues to argue in favor of a downside bias
The Australian Dollar is attempting to a recover against its US counterpart after testing range floor support limiting downside momentum since mid-July. Near-term price action continues to be defined by a series of lower highs and lows however, arguing for a bearish bias that is still in place.
From here, a daily close above support-turned-resistance at 0.7908, the September 22 low, opens the door for the retest of a formerly broken rising trend line at 0.8006. Support remains in the 0.7808-19 area (August 15 low, 38.2% Fibonacci retracement). Breaking below that exposes the 50% level at 0.7725.
The short AUD/USD position initiated at 0.7970 hit its initial objective and partial profit has been booked. The rest of the trade continues to be in play to capture any follow-on weakness. The stop-loss has been revised to the breakeven level.
What do retail traders’ buy/sell decisions hint about coming AUD/USD moves? Find out here!