AUD/USD Technical Analysis: Critical Trend Line Under Fire
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AUD/USD Technical Analysis: Critical Trend Line Under Fire

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Talking Points:

  • AUD/USD Technical Strategy: Flat
  • Australian Dollar attempting to break 10-month trend line again
  • Looking to enter short after clear-cut breakout has been confirmed

The Australian Dollar is once again attempting to break free of a narrowing consolidation range that has confined price action since mid-August . The outcome of US presidential election fueled aggressive volatility but fell short of securing a defined breakout, as was suspected .

Near-term continues to be marked by a rising trend line set from January, now at 0.7592. A daily close below this barrier exposes the 38.2% Fibonacci retracement at 0.7536. Alternatively, a reversal back above the 23.6% Fib at 0.7629 opens the door for a retest of the 14.6% retracement at 0.7686.

A clear-cut breakout is yet to materialize so picking a directional bias seems premature for now. In any case, prices are wedged to tightly between immediate up- and down-side technical barriers to justify taking a trade from a risk/reward perspective. Waiting for a better-defined setup seems most attractive for now.

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AUD/USD Technical Analysis: Critical Trend Line Under Fire

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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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