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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
AUD/USD Technical Analysis: Trend Bias Still Bearish After Rebound

AUD/USD Technical Analysis: Trend Bias Still Bearish After Rebound

Ilya Spivak, Head Strategist, APAC

AUD/USD Technical Strategy: NET SHORT AT 0.7492

  • Australian Dollar rebound neutralizes 3-week resistance hurdle
  • Dominant chart setup continues to favor downtrend resumption
  • Short AUD/USD trade still in play, invalidation above 0.73 mark

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

The Australian Dollar has mounted a spirited recovery against its US counterpart but overall chart positioning continues to favor downtrend resumption. The four-hour chart reveals a break of three-week resistance, seemingly defusing immediate selling pressure.

AUD/USD Technical Analysis: Trend Bias Still Bearish After Rebound

Turning to the daily chart however, the move has amounted to no more than retest of recently broken double bottom support in the 0.7145-75 area, now recast as resistance. Furthermore, anything shy of a daily close above the outer layer of trend resistance – now at 0.7330 – keeps the dominant bias convincingly bearish.

Australian vs US Dollar chart - daily

With that in mind, the short AUD/USD position initiated at 0.7608, then scaled up near 0.7530 and thereafter again at 0.7325, remains in play.The overall cost basis is 0.7492. A stop-loss will be activated on a discretionary basis, although a break of trend resistance is a likely catalyst to exit.

AUD/USD TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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.

DISCLOSURES