AUD/USD Technical Analysis: Short Position Now in Play

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • 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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

AUD/USD Technical Analysis: Short Position Now in Play

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. Ranges Persist in USD-Pairs Post-FOMC Meeting
    Forex News

    Ranges Persist in USD-Pairs Post-FOMC Meeting

  2. AUD/USD Technical Analysis: Down Trend Ready to Resume?
    Forex News

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

  3. AUD/USD Risks Return To Range-Bottom As Reversal Pattern Emerges
    Forex News

    AUD/USD Risks Return To Range-Bottom As Reversal Pattern Emerges

  4. Dollar Surges as FOMC Ends Quantitative Easing
    Forex News

    Dollar Surges as FOMC Ends Quantitative Easing

  5. Trade Setups in EUR/USD, GBP/USD, AUD/USD Ahead of FOMC Meeting
    Forex News

    Trade Setups in EUR/USD, GBP/USD, AUD/USD Ahead of FOMC Meeting

Trading Center