Skip to Content
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.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
AUD/USD Technical Analysis: Holding Short Through Sideways Trade

AUD/USD Technical Analysis: Holding Short Through Sideways Trade

What's on this page

AUD/USD Technical Strategy: NET SHORT AT 0.7547

  • Aussie Dollar is still treading water in a choppy range vs US namesake
  • Down trend resistance is intact, suggesting overall bias favors weakness
  • Wait-and-see approach favored until prices break free of congestion

See our free guide to get help building confidence in your AUD/USD trading strategy !

The Australian Dollar continues to be confined to a choppy range against its US namesake but broader positioning favors bearish trend resumption. Price action has been defined by a series of lower highs and lows since setting a double top near the 0.81 figure in late January. Until that is conclusively invalidated, the path of least resistance is seen leading downward.

AUD/USD Daily Chart

Immediate support remains at 0.7335, a chart inflection point in play since mid-June 2016. Breaking below this barrier on a daily closing basis opens the door for another challenge of double bottom support in the 0.7145-65 area. Alternatively, a break above the outer bound of trend resistance – now at 0.7483 – paves the way for a foray back 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 offers neither a convincing argument for near-term downward trend resumption nor compelling evidence of reversal. With that in mind, a wait-and-see approach seems most sensible for now until greater clarity emerges.


--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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