AUD/USD Technical Analysis: Down Trend May Be Resuming

AUD/USD Technical Analysis explained by professional Forex trading experts the “AUD/USD Technical Analysis” FX trading team.

AUD/USD Technical Analysis?

The Australian Dollar corrected higher against its US namesake as expected but the down trend started in early September may now be resuming. Prices were rejected on a retest of former range support and slipped back below a rising trend line set from December 2016, hinting that recent gains were corrective.

From here, a daily close below the 0.7505-32 area (23.6% Fibonacci expansion, November 21 low) opens the door for a challenge of the 38.2% level at 0.7418. Alternatively, a break above support-turned-resistance at 0.7625 sees the next upside barrier at 0.7672, the 23.6% Fib retracement.

A brief intraday bounce offered a window with acceptable risk/reward parameters to enter short and the trade was activated at 0.7611, initially targeting 0.7532. A stop-loss will be triggered on a daily close above 0.7644. Profit on half of the trade will be booked and the stop moved to breakeven on hitting the first objective.

AUD/USD Technical Analysis Conclusion

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