(MENAFN- DailyFX) Australian Dollar Price Chart – AUD/USD Daily
Chart Prepared byMichael Boutros , Technical Strategist;AUD/USD on Tradingview
Technical Outlook: In my lastAustralian Dollar Price Outlookwe noted that Aussie was testing near-term uptrend support while highlighting that, 'Weakness beyond 6815 would suggest a larger correction is underway.' A downside break post- FOMClast week fueled a steeper decline in price withAUD / USDnow testing key daily support at 6759/67 – a region defined by the 61.8%retracementof the September advance and the monthly low-day close.
A break / close below this threshold is needed to keep the short-bias viable with such a scenario targeting the monthly open /pitchforksupport at 6724. Key daily resistance now 6827 with a breach above the monthly high-day close at 6866 needed to suggest a more significant low was registered this month.
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Australian Dollar Price Chart – AUD/USD 120min
Chart Prepared byMichael Boutros , Technical Strategist;AUD/USD on Tradingview
Notes: A closer low at Aussie price action sees AUD/USD continuing to trade within the confines of a near-term descending pitchfork formation extending off monthly highs with the lower parallel catching support on Friday. The weeklyopening-rangeis taking shape just above key support at 6759/67 and we're looking for the break for guidance. Shorts are at risk near-term while above this threshold.
Interim resistance stands at the median-line backed by thetrendlineconfluence near 6800 and 6810- both areas of interest of possible topside exhaustion IF reached. Ultimately a breach above 6828 is needed to validate a larger breakout. A break lower from here targets 6745 backed by the monthly open at 6724- look for a bigger reaction there IF reached.
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Bottom line: Aussie is testing key near-term support here at 6760/67 with the weekly opening-range taking shape just above. From a trading standpoint, a good spot to reduce short-exposure / lower protective stops. Look for possible downside exhaustion near-term while above the lower parallel – ultimately a larger recovery in price may offer more favorable short entries with the risk weighted to the downside while within this formation. Review my latestAustralian Dollar Weekly Price Outlookfor a closer look at the longer-term AUD/USD technical trading levels.
Australian Dollar Trader Sentiment – AUD/USD Price Chart
A summary ofIG Client Sentimentshows traders are net-long AUD/USD - the ratio stands at +1.67 (62.6% of traders are long) – bearish reading Traders have remained net-long since July 19th; price has moved 2.8% lower since then Long positions are 5.6% higher than yesterday and 29.0% higher from last week Short positions are4.9% higher than yesterday and 15.9% lower from last week We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggestsAUD/USD pricesmay continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger AUD/USD-bearish contrarian trading bias from a sentiment standpoint.
See how shifts in Aussie retail positioning are impacting trend-Learn more about sentiment!
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