Never miss a story from Ilya Spivak

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Ilya Spivak

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

AUD/USD Technical Strategy: FLAT

  • Aussie Dollar break of counter-trend support hints downtrend is resuming
  • Four-hour chart hints at near-term bounce before bearish follow-through
  • Looking for upswing to yield improved risk/reward setup for a short trade

Get help building confidence in your AUD/USD strategy with our free trading guide!

Another attempt at reviving the Australian Dollar down trend against its US counterpart appears to be in progress. Prices have broken rising counter-trend support set from the swing bottom in late October, hinting that a period of corrective gains has run its course and dominant bearish bias is ready to reassert itself.

Australian Dollar vs US Dollar chart - daily

A look at the four-hour chart casts doubt on immediate follow-through however. The pair put in a bullish Morning Star candlestick pattern and bounced above immediate trend line resistance, hinting that an upswing may be in the cards before further progress downward.

AUD/USD Technical Analysis: Bounce May Yield Short Trade Setup

Taken together, it seems like sellers may indeed reclaim the initiative before long but an opportunity to enter short with improved risk/reward parameters following a bounce might present itself. With that in mind, opting to monitor developments from the sidelines for now appears to be most prudent.

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