AUD/USD Technical Analysis: Down Trend Set to Resume?
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AUD/USD Technical Analysis: Down Trend Set to Resume?

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Talking Points:

  • AU D/USD Technical Strategy: Short at 0.7423
  • Aussie Dollar puts in bearish candle setup at key resistance
  • Downturn would see initial support below 0.74 mark vs. USD

The Australian Dollar may be preparing to turn lower anew after recovering to test the bounds of a two-month down trend against its US counterpart. Prices corrected higher as expected but a bearish Evening Star candlestick pattern now suggests the dominant bearish bias is reasserting itself.

From here, a daily close below the 23.6% Fibonacci expansion at 0.7368 opens the door for a test of the May 9 low at 0.7329, followed by the 38.2% level at 0.7306. Alternatively, a break above 0.7451 (channel top, neckline support-turned-resistance) exposes the 38.2% Fib retracement at 0.7490.

Risk/reward parameters appeared acceptable and a short AUD/USD position has been triggered at 0.7423. The trade initially targets 0.7368 and carries a stop-loss set to activate on a daily close above 0.7451. Profit on half of the position will be taken and the stop-loss moved to breakeven once the first objective is met.

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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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