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