The Australian Dollar continues to Move Lower

Points to consider with the Australian Dollar:

  • The Australian Dollar is now short AUD at 0.7328.
  • Aussie Dollar forms a bearish candlestick on the daily chart.
  • Trade Strategy: Short AUD sale now in play

The AUD/USD Forex market has formed a bearish dark cloud candlestick after failing at the falling trend line resistance. This suggest that the bearish downtrend for the Aussie Dollar is back in play. Last week’s correction higher hit a wall after an underwhelming non-farm payroll release on Friday.

Aussie Dollar Technical Analysis

Let’s discuss today’s Australian Dollar technical analysis. There is near term support lining up at 0.7265. A daily close below this first downside barrier challenges the next downside barrier that lines up at 0.7210.

The alternative Australian Dollar technical analysis notes the first upside barrier that lines up at a cluster area running from the January 5 high. This area is at 0.7358 to 0.7395.  A break above this first upside barrier challenges the next resistance level that lines up 0.7470.

Trade Strategy

Let’s discuss today’s Australian Dollar trade strategy. A short AUD sale was just triggered at 0.7328. The first target of this sale lines up at 0.7265. The stop loss, initially, is at 0.7358 and will activate with a daily close above that level. Once I meet my first target, I will book half the trade and trail the stop loss to breakeven. I will leave the remainder of the trade open to capture any further weakness with the Australian Dollar.

David Frank

David Frank

Chief Market Strategist at CupO'Forex
David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.
David Frank

@cupoforex

#1 Forex News Site
@forexlive China press says PBOC unlikely to inject large-scale liquidity into the market https://t.co/8Z85lrVFzS - 10 months ago
David Frank
David Frank

comments