The Aussie Dollar Challenges a Key Resistance Level Again

AUD/USD (0.7632)

Points to consider in this Aussie Dollar Forex market:

• The Aussie Dollar is once again challenging resistance that has capped gains going back to June.
• From a risk to reward standpoint, there is no trade for now.
• Trade strategy: Stand Aside

The AUD/USD Forex market is one again challenging a key resistance level above 0.76. The Aussie Dollar found support above 074 and has drifted higher once again but this Forex market has been capped at these levels since late June. A daily close above this area challenges the April swing top. Please refer to the below MT 4 daily chart for today’s technical analysis and trade strategy.

Aussie Dollar Technical Analysis

Let’s discuss today’s AUD/USD daily technical analysis.  There is near term technical resistance lining up at 0.7767. A daily close above this level challenges the April 21 swing high that lines up at 0.7835. The alternative technical analysis, for this Forex market. There is technical support lining up at 0.7530. A break below that first support level challenges the next downside barrier that lines up at 0.7420. This also the July 27 low price point.

Trade Strategy

Let’s discuss today’s AUD/USD trade strategy now. My desired AUD trade is a short sale. However, even though we are facing formidable resistance, there is no bearish reversal signal in this Forex market. This makes that short AUD sale premature. There is also no long AUD trade, as we are trading against a technical resistance level. Any trade, from a risk to reward perspective remains premature for now. I will opt to stand aside and remain flat in this particular Forex market for now.