AUD/USD Technical Analysis: 2017 Uptrend Under Fire
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- AUD/USD Technical Strategy: Short
- Aussie Dollar breaks 2017 uptrend support, hinting at significant reversal ahead
- Short position activated below 0.76 figure looking for a test of 38.2% Fib support
The Australian Dollar has broken trend line support dating back to December 2016, suggesting the currency has reversed course against its US counterpart. The breakdown played out in the aftermath of disappointing wage growth data. The subsequent release of a mixed jobs report failed to offer a lasting reprieve.
From here, a daily close below the 38.2% Fibonacci expansion at 0.7539 opens the door for a challenge of the 50% level at 0.7480. Alternatively, a move back above the 23.6% Fib at 0.7612 – a move that would also undo the trend line break – paves the way for a retest of range floor support-turned-resistance at 0.7644.
Technical positioning seems to suggest bearish acceleration up ahead and a short AUD/USD position as been triggered at 0.7590. A stop-loss will be activated on a daily close above 0.7612. Profit on half of exposure will be booked and stop-loss moved to breakeven when (and if) the first objective is met.
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