AUD/USD Technical Strategy: FLAT
- Australian Dollar counter-trend line break hints at bearish trend resumption
- Sellers struggling to find lasting follow-though past support under 0.72 figure
- Waiting for improved risk/reward setup to consider entering short position
Get help building confidence in your AUD/USD strategy with our free trading guide!
Australian Dollar sellers are struggling to find follow-through after pushing the currency below support guiding the upswing from late October against its US counterpart. The pair is hovering at familiar resistance-turned-support in the 0.7142-70 area. A break below it on a daily closing basis exposes the 0.7021-41 zone.
Minor resistance is marked by the December 13 high at 0.7248. A push beyond that exposes a more substantive upside hurdle in an area bracketed by former counter-trend support and the December 3 swing top. The latter level marks the region’s outer layer at 0.7393.
An actionable trade setup seems absent at the moment. Overall positioning seems to suggest bearish trend resumption is in progress, but prices are too close to immediate support to justify entering short on risk/reward grounds. With that in mind, opting to stand aside seems prudent.
AUD/USD TRADING RESOURCES
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
- Join a free Trading Q&A webinar and have your questions answered
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To contact Ilya, use the comments section below or @IlyaSpivak on Twitter
