(MENAFN- DailyFX) AUD/USD Technical Strategy: BEARISH Australian Dollar testing key near-term support below 0.71 figure Breakout sets the stage for completing large bearish Triangle setup Invalidating bearish bias calls for a reversal back above 0.72 mark Get help building confidence in your AUD/USD strategy with our free trading guide!
The Australian Dollar accelerated lower after rejection at resistance capping upside progress against its US counterpart since early December 2018, as expected . Prices are now testing support guiding the upswing from early March, with a breakdown confirmed on a daily closing basis opening the door for a challenge of the 0.6982-0.7021 area.
That marks the bottom of an emerging Descending Triangle pattern. The setup typically carries bearish implications. Completing it with a close through support's outer layer would signal resumption of the dominant downtrend started in January 2018. In this scenario, extrapolating the Triangle's height downward from the breakout point implies a downside objective at 0.6650.
Sizing up more immediate positioning on the four-hour chart, the 0.7049-73 congestion area seems to follow immediately after trend line support, with a breach below that setting the stage for a probe below the 0.70 figure. Thorough invalidation of the bearish tilt in overall positioning appears to call for a reversal back above the 0.72 figure, unlocking the range prevailing since mid-March.
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