AUD/USD Technical Analysis: Looking to Sell at 0.71 Figure

By | February 3, 2016

DailyFX.com –

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

Talking Points:

  • AUD/USD Technical Strategy: Pending short at 0.7102
  • Australian Dollar drops most in 3 weeks, hints bearish trend is resuming
  • Looking for corrective bounce to get short just above 0.71 vs. US Dollar

The Australian Dollar turned sharply lower against its US namesake, putting in the largest daily decline in three weeks. Positioning suggests the longer-term down trend may be resuming after the currency pair recovered to a monthly high having found support above the 0.68 figure.

From here, a daily close below the 23.6% Fibonacci expansion at 0.7023 opens the door for a challenge of the 38.2% level at 0.6950. Alternatively, a reversal above the 61.8% Fib retracement at 0.7136 paves the way for a test of the 76.4% threshold at 0.7209.

Prices are too close to near-term support to justify entering short from a risk/reward perspective. With that in mind, we will establish an entry order to sell the pair at 0.7102 in line with our 2016 fundamental forecast. If triggered, the trade will initially aim for 0.7023 and carry a stop-loss activated on a daily close above 0.7141.

How are FXCM traders positioned in AUD/USD? Find out here.

AUD/USD Technical Analysis: Looking to Sell at 0.71 Figure

original sourceDailyFX.com –

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

Talking Points:

  • AUD/USD Technical Strategy: Pending short at 0.7102
  • Australian Dollar drops most in 3 weeks, hints bearish trend is resuming
  • Looking for corrective bounce to get short just above 0.71 vs. US Dollar

The Australian Dollar turned sharply lower against its US namesake, putting in the largest daily decline in three weeks. Positioning suggests the longer-term down trend may be resuming after the currency pair recovered to a monthly high having found support above the 0.68 figure.

From here, a daily close below the 23.6% Fibonacci expansion at 0.7023 opens the door for a challenge of the 38.2% level at 0.6950. Alternatively, a reversal above the 61.8% Fib retracement at 0.7136 paves the way for a test of the 76.4% threshold at 0.7209.

Prices are too close to near-term support to justify entering short from a risk/reward perspective. With that in mind, we will establish an entry order to sell the pair at 0.7102 in line with our 2016 fundamental forecast. If triggered, the trade will initially aim for 0.7023 and carry a stop-loss activated on a daily close above 0.7141.

How are FXCM traders positioned in AUD/USD? Find out here.

AUD/USD Technical Analysis: Looking to Sell at 0.71 Figure

original source
Source from..DailyFX

Leave a Reply

Your email address will not be published. Required fields are marked *