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Talking Points:
AUD/USD Technical Strategy: Short at 0.7457 Australian Dollar upswing tilts risk/reward setup to allow for short trade Targeting move below 0.74 mark on expectation resistance sub-0.75 holds The Australian Dollar may be readying to resume the down trend launched in early November after a brief upward correction against its US counterpart. Prices broke the counter trend line guiding the corrective recovery from the November 21 low, suggesting the dominant bearish bias is reasserting itself.
googletag.cmd.push(function() { googletag.display('div-gpt-ad-1473707600938-14'); }); A daily close below the support shelf at 0.7383 opens the door for a challenge of the 0.7311-19 area (November 21 low, 38.2% Fibonacci expansion). Alternatively, a push above the 38.2% Fib retracement at 0.7490 sees the next upside barrier at 0.7545, the 50% threshold.
A bounce after the break of counter-trend support has improved risk/reward parameters and a short trade has been triggered at 0.7457, initially targeting 0.7383. A stop-loss will be activated on a daily close above 0.7490. Half of the trade will be booked and the stop-loss moved to breakeven on hitting the first target.
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