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- AUD/USD Technical Strategy: Short at 0.9414
- Support:0.9305, 0.9223, 0.9181
- Resistance: 0.9422-53, 0.9507, 0.9602
The Australian Dollar turned downward as expected against its US counterpart after the pair produced a Dark Cloud Cover candlestick pattern. Support lines up in the 0.9305-24 area, marked by a horizontal pivot in play since March and the 23.6% Fibonacci retracement. A break below that on a daily closing basis exposes the 0.9181-223 zone, bracketed by a range bottom and the 38.2% level. Alternatively, a reversal above the 0.9422-53 area opens the door for a test of the 38.2% Fib expansion at 0.9507.
Our short entry order at 0.9414 was triggered and the trade is now in play. The initial target is 0.9324, with a stop-loss set to activate on a daily close abovethe July 1 high at 0.9504. We will take profit on half of the trade and move the stop-loss to breakeven on the remainder of the position once the first target is met.
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Daily Chart - Created Using FXCM Marketscope 2.0