AUD/USD Technical Analysis: Deeper Aussie Dollar Drop Expected

AUD/USD Technical Strategy: NET SHORT AT 0.7456

  • Australian Dollar stalls but trend bias favors bearish resumption
  • Break of support above 0.70 threatens decline to three-year lows
  • Short trade remains in play, invalidation point above 0.71 mark

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The Australian Dollar is stalling at support above the 0.70 figure against its US namesake but the broader price trend continues to look decidedly bearish. Rejection on a re-test support-turned-resistance in the 0.7085- 0.7104 area may precede bearish resumption.

AUD/USD Technical Analysis: Deeper Aussie Dollar Drop Expected

Immediate support is at 0.7041, the October 8 low. A break below that confirmed on a daily closing basis sees the next significant barrier at 0.6900, the September 2015 low, followed by the January 2016 bottom at 0.6827. Alternatively, a break above 0.7104 exposes trend resistance in the 0.7156-0.7229 zone.

A short AUD/USD position was activated at 0.7608. It was subsequently scaled up, first near 0.7530, then at 0.7325, and most recently Article source: