AUD/USD Technical Analysis: Aussie Trend Bias Favors Weakness
AUD/USD Technical Strategy: NET SHORT AT 0.7547
- Aussie Dollar treading water but dominant down trend remains intact
- Support remains near 0.73, trend resistance now just above 0.75 mark
- Waiting for confirmation to either scale into or unwind short position
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The Australian Dollar continues to struggle for near-term direction near the 0.74 figure against its US counterpart but the dominant trend remains firmly bearish. The series of lower highs and lows established in late January from double top resistance above 0.81 continues to define price action.
From here, a daily close below chart inflection point support at 0.7335 opens the door for a challenge of double bottom support in the 0.7145-65 area. Alternatively, a push above the upper layer of trend resistance – now at 0.7526 – paves the way for recovery above the 0.76 figure.
The short AUD/USD position triggered at 0.7608 and subsequently scaled up near 0.7530 continues to be in play. Current positioning doesn’t offer the confirmation to add to exposure nor abandon it. With that in mind, a wait-and-see approach seems most sensible. 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.