AUD/USD Technical Strategy: SHORT AT 0.7231
- Aussie Dollar downtrend is trying to regain momentum once again
- Initial support just below 0.72 mark, resistance centered on 0.7260
- Short AUD/USD trade bac in play at 0.7231 after stop-out earlier
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Another attempt at re-establishing the Australian Dollar downtrend against its US counterpart appears to be afoot. Prices broke below rising trend line support guiding them higher since late October, hinting that the dominant bearish bias established early in the year is being reasserted.
Initial support is in the 0.7161-0.7179 area, marking the bottom of the range from early November. A daily close below that opens the door for a test of the support shelf in the 0.7046-56 zone, followed by the October 26 swing bottom at 0.7018.
Alternatively, reversal back above the near-term chart inflection area in the 0.7256-68 region would invalidate the immediate bearish bias and expose another recently significant price band centered on the 0.73 figure. This is followed by the November 16 high at 0.7338.
An earlier attempt at selling AUD/USD at 0.7231 stopped out. Exposure has now been re-established, with the initial objective at 0.7161 again. However, the ultimate take-profit level will be determined on a discretionary basis. A stop-loss will be activated on a daily close above 0.7268.
AUD/USD TRADING RESOURCES
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To contact Ilya, use the comments section below or @IlyaSpivak on Twitter
