AUD/USD Technical Analysis: Aussie Bounce Keeps Downtrend Intact

AUD/USD Technical Strategy: NET SHORT AT 0.7492

  • Australian Dollar rebound stops on test of downtrend resistance
  • Break of support above 0.72 needed to signal bearish resumption
  • Short AUD/USD trade remains in play absent confirmed reversal

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The Australian Dollar managed to capitalize as its US counterpart retreated against nearly all of its major counterparts but the dominant downtrend remains intact. Indeed, the upswing conspicuously stopped squarely at trend line resistance defining the descent from the double top established below 0.82 in January.

Australian Dollar vs US Dollar - daily chart

Turning to the four-hour chart, the pair is revealed to be sitting at support guiding the upswing from mid-September lows. A break below this barrier – now at 0.7220 – opens the door for a test of the 0.7139-43 area. Trend resistance is now at 0.7285. A daily close above that may precede a test back above 0.74.

Australian Dollar vs US Dollar - 4-hour chart

On balance, the absence of a

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