As per the technical analysis of AUD/USD: Short at 0.7611
Aussie Dollar downtrend may be resuming following a brief corrective upswing
Short trade activated, looking for a move challenging November’s swing low a new
AUD/USD: The Australian Dollar corrected higher against its US namesake as expected but the downtrend started in early September may now be resuming. Prices were rejected on a retest of former range support and slipped back below a rising trend line set from December 2016, hinting that recent gains were corrective.
From here, a daily close below the 0.7505-32 area (23.6% Fibonacci expansion, November 21 low) (AUD/USD)opens the door for a challenge of the 38.2% level at 0.7418. Alternatively, a break above support-turned-resistance at 0.7625 sees the next upside barrier at 0.7672, the 23.6% Fib retracement.
AUD/USD: A brief intraday bounce offered a window with acceptable risk/reward parameters to enter short and the trade was activated at 0.7611, initially targeting 0.7532. A stop-loss will be triggered on a daily close above 0.7644. Profit on half of the trade will be booked and the stop moved to breakeven on hitting the first objective.