AUD/USD Technical Analysis: Aiming Below 0.70 After Support Break

AUD/USD Technical Strategy: NET SHORT AT 0.7456

  • Australian Dollar resumes downtrend after test of 2018 resistance
  • Prices now aiming below 0.70 figure after break of September low
  • Added further to short AUD/USD exposure just above 0.72 mark

See our Q4 forecasts to learn what will drive key asset prices through year-end!

The Australian Dollar resumed the down move against its US counterpart as expected after a short-lived upswing stalled at trend resistance set from January. A break below September’s swing bottom at 0.7085 opens the door for deeper losses.

The next layer of support lines up at 0.6914, the 38.2% Fibonacci expansion, followed by the 0.6790-0.6827 zone (50% level, January 2016 low). Alternatively, a move back above 0.7085 – now recast as resistance – may precede another test of the trend ceiling, now in the 0.7175-0.7248 area.

Australian Dollar vs US Dollar chart - daily

Additional exposure was added to the short AUD/USD trade triggered at 0.7608 and subsequently scaled up, first near 0.7530 and then again

Article source: https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2018/10/05/AUDUSD-Technical-Analysis-Aiming-Below-0.70-After-Support-Break.html