AUD/USD Technical Analysis: Bearish Trend May Be Resuming
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AUD/USD Technical Analysis: Bearish Trend May Be Resuming

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Talking Points:

  • AUD/USD Technical Strategy: Short at 0.7420
  • Aussie Dollar signals down trend vs. US counterpart is resuming
  • Trend line break paves the way for a move below the 0.74 figure

The Australian Dollar may have resumed the down trend launched in early November after prices broke support guiding a corrective upswing from last month's lows. The currency suffered the largest drop in two weeks in the aftermath of the FOMC monetary policy announcement .

Near-term support is at 0.7346, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis paving the way for a challenge of the 50% level at 0.7291. Alternatively, a reversal back above the 23.6% Fib at 0.7415 opens the door for a retest of the 14.6% expansion at 0.7457.

An entry order to sell AUD/USD at 0.7420 was activated and the position is now in play, initially targeting 0.7346. A stop-loss will be activated on a daily close above 0.7457. Profit on half of the trade will be booked and the stop adjusted to breakeven when the first objective is met.

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AUD/USD Technical Analysis: Bearish Trend May Be Resuming

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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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