AUD/USD Technical Analysis: Down Trend Intact as Selloff Pauses
AUD/USD Technical Strategy: NET SHORT AT 0.7547
- Aussie Dollar down trend intact as prices find interim support sub-0.74
- Near-term support just above 0.73, resistance at former May swing low
- Looking for an actionable opportunity to add to existing short position
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The Australian Dollar seems to have found interim support below the 0.74 figure but the dominant trajectory still favors weakness against its US namesake. The trend is defined by a series of lower highs and lows set from double top resistance established in late January.
A daily close below support in the 0.7315-35 area (50% Fibonacci expansion, inflection point) opens the door for a challenge of the 61.8% level at 0.7230. Alternatively, a move back above the May 9 low at 0.7413, now recast as resistance, paves the way for a retest of the 23.6% Fib at 0.7506.
The short AUD/USD trade activated at 0.7608 and then scaled up near 0.7530 remains active. An actionable opportunity to grow exposure further looks to be absent at this time but positioning will be actively monitored for any such openings. A stop-loss will be activated on a discretionary basis.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.