Points to consider in this Aussie Dollar Forex market:
- Aussie Dollar is trying to form a reverse Head and Shoulders below 0.77.
- Still looking for confirmation before placing a trade.
- Trade strategy: Stand aside
The AUD/USD Forex market is struggling to find follow through and is looking to form a reverse Head and Shoulders below 0.77, which is bearish. There is also a possible evening star candlestick in formation but the triple top in the current price action area is more relevant at this time.
Aussie Dollar Technical Analysis
Let’s discuss today’s AUD/USD daily technical analysis. Near term support is lining up at 0.7598. A daily close below this first downside barrier challenges the next technical support lining up at the rising trend line. This downside barrier is at 0.7495 today. The alternative Aussie Dollar analysis, notes technical resistance lining up at 0.77. This is the triple top resistance area. A break above this first upside barrier challenges the next technical resistance level at 0.7760.
Let’s talk about today’s Aussie Dollar trade strategy. Price action has not confirmed the reverse Head and Shoulders. Also, price action is too close to a technical support level and from a reward to risk outlook, this makes a short AUD sale premature. I will opt to stand aside in this Forex market until a better trade opportunity comes along. Preferable a short AUD sale in line with my fundamental outlook with the Australian Dollar.