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Talking Points:
- AUD/USD Technical Strategy: Short at 0.7895
- Aussie Dollar looks poised to test key support point below 0.78 figure vs. USD
- Near-term weakness still strictly corrective as trend from June lows points up
The Australian Dollar looks vulnerable to deeper losses having turned lower after finding resistance below the 0.81 figure against its US counterpart (as expected). The near-term uptrend defined by higher highs and lows since June is still intact however, at least for now.
A narrow break below the 23.6% Fibonacci retracement at 0.7892 clears the way for a test at the intersection of a rising trend line and the 38.2% level at 0.7784. Alternatively, a move back above 0.7892 sees the next upside barrier at 0.7958, the 14% Fib.
Risk/reward parameters appeared acceptable for a short AUD/USD trade and the pair was sold at 0.7895, aiming for an initial target at 0.7784. A stop-loss will be activated on a daily close above 0.7958. Profit on half of the position will be booked and stop moved to breakeven once the first objective is met.
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