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AUD/USD Technical Analysis: Aussie Probes Four-Year Low

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Talking Points:

The Australian Dollar renewed the downward push against its US namesake, sinking to tag the lowest level in over four years. A daily close below the 0.8652-59 area marked by the January 24 low and the 23.6% Fibonacci expansion exposes the 38.2% level at 0.8544. Alternatively, a turn above the 14.6% Fib at 0.8718 opens the door for a test of the October 2 high at 0.8826.

We entered short AUDUSD at 0.9186 and have since taken profit on half ofour exposure. The rest remains open to capture further downside momentum with a stop-loss at 0.9085, our initial objective.

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Daily Chart – Created Using FXCM Marketscope 2.0

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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