AUD/USD Technical Technique: BEARISH
Aussie Greenback nonetheless caught in a variety beneath zero.72 determine vs US namesake
Total positioning hints at bearish Triangle formation taking form
Day by day shut beneath zero.7054 would possibly mark preliminary affirmation of reversal
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The Australian Greenback continues to be mired in a uneven vary beneath the zero.72 determine towards its US counterpart. Whereas this speaks to near-term indecision, the foreign money’s incapacity to construct increased following November’s break above pattern resistance guiding costs increased since January 2016 appears telling.
Certainly, the collection of decrease highs from early December could also be carving out a Triangle formation. That sometimes marks consolidation earlier than the resumption of the previous pattern. On this case, such a setup would carry decidedly bearish implications. Affirmation continues to be pending at the moment nevertheless.
Costs are sitting squarely atop help within the zero.7054-76 space, making a brief place appear unattractive from a threat/reward perspective. Then again, choosing the lengthy facet – whilst a tactical commerce with out pretentions to lasting follow-through – could be seen as untimely absent a transparent bullish reversal sign.
Incoming occasion threat by the use of the RBA financial coverage announcement could be another excuse that merchants are discouraged from committing to directional wager somehow in the meanwhile. We shall be monitoring the speed choice and its AUD/USD affect reside.
AUD/USD TRADING RESOURCES
— Written by Ilya Spivak, Foreign money Strategist for DailyFX.com
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