Australian Dollar vs US Dollar daily price chart
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AUD/USD Technical Analysis: Deeper Down Move Seen Ahead

DailyFX.com -

AUD/USD Technical Strategy: NET SHORT AT 0.7547

  • Australian Dollar down move may be ready to regain momentum
  • Break of counter-trend line follows hold at former resistance level
  • Opting to add further to AUD/USD short position already in play

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The Australian Dollar may be on the cusp of another push lower against its US counterpart following a brief corrective recovery to retest former chart support. The next stage of the emerging down trend following a break of trend support from January 2016 may be about to take place.

A pair of Shooting Star candlesticks on the daily chart following a retest of wedge floor support-turned-resistance hints at indecision, warning that upside momentum might be ebbing. The setup is made more actionable by a break of counter-trend line support on the four hour chart.

Current positioning seems to present another opportunity to add to the AUD/USD short position initially entered at 0.7608 , albeit an unexpected one in the context of last week's scale-up . Still, the trade was taken and the next entry price is now 0.7547. A stop-loss will be triggered on a discretionary basis.

AUD/USD TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

original source

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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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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