To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
- AUD/USD Technical Strategy: Short at 0.90
- Support: 0.8906 (14.6% Fib exp.), 0.8807 (23.6% Fib exp.)
- Resistance: 0.9051-85 (Jan 13 close and high, possible double top)
We entered short AUD/USD last week after prices put in a bearish Evening Star candle formation, hinting a double top may be in place in the 0.9051-85 area (marked by the January 13 closing and swing highs). As of now, the pair continues to hover below this barrier, offering no follow-through on reversal or a clear invalidation of its possibility.
On balance, we will continue to hold short for now. The initial objective remains at 0.8906, the 14.6% Fibonacci expansion. Breaking below this boundary on a daily closing basis exposes the 23.6% level at 0.8807. A stop-loss will be activated on a daily close above 0.9085.
Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com