AUD/USD Technical Analysis: Aussie Dollar Repelled at Trend Top
AUD/USD TECHNICAL OUTLOOK: BEARISH
- Australian Dollar rejected at 11-month downtrend resistance vs USD
- Break of near-term support to beckon next leg of the structural decline
- Longer-term positioning suggests scope to test 2008-2009 crisis lows
Get help building confidence in your AUD/USD strategy with our free trading guide!
The Australian Dollar is back on the defensive after testing resistance establishing the downtrend against its US counterpart since December 2018. Last week’s resistance break has been overturned and AUD/USD is back to challenge support guiding it higher since the beginning of October.
A break below this barrier confirmed on a daily closing basis would suggest the corrective upswing has been exhausted and the dominant bearish trajectory resumed. A down leg broadly in line with the trend average may see prices testing decade lows near the 0.66 figure.
Daily AUD/USD chart created with TradingView
Longer-term positioning looks still-more ominous. The 2018 break of a 17-year uptrend and the subsequent breach of the 0.69 figure in July of 2019 seems put prices broadly on course to retest lows in the 0.6009-0.6352 region, where prices have not ventured since the 2008 financial crisis.
Monthly AUD/USD chart created with TradingView
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 live webinar and have your trading questions answered
--- 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.