AUD/USD Technical Analysis: Aussie Breaks Key Support
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AUD/USD Technical Analysis: Aussie Breaks Key Support

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Talking Points:

  • AU D/USD Technical Strategy: Pending short at 0.7572
  • Aussie Dollar may be resuming long-term down trend vs. US cousin
  • Bounce sought to improve risk/reward parameters for short position

The Australian Dollar has broken through the floor of the rising trend guiding prices higher since the beginning of the year, hinting that the long-term down trend is resuming. The breakdown occurred against a backdrop of negative RSI divergence, bolstering the case for a topping scenario.

Initial support is in the 0.7463-98 area (horizontal pivot, 23.6% Fibonacci expansion), with a break below that on a daily closing basis opening the door for a test of the 38.2% level at 0.7373. Alternatively, a reversal above the January 24 high at 0.7609 sees the next major upside barrier at 0.7760, a double top.

Prices are too close to near-term support to justify entering short from a risk/reward perspective. With that in mind, an entry order to sell the pair at 0.7572 has been established. If activated the trade will initially target 0.7498 and carry a stop-loss activated on a daily close above 0.7609.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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