The Aussie Dollar Starts to Move Lower Again

AUD/USD (0.74119)

Points to consider in this Aussie Dollar Forex market:

• The Aussie Dollar downtrend is back in play after breaking below trend line support.
• Trading range is too narrow for a short AUD sale.
• Trade strategy: Stand aside

The AUD/USD Forex market appears to have resumed its overall downtrend after breaking below trend line support, noted on the below daily MT 4 chart. This trend line was in play since late May. The sentiment lined Aussie Dollar plummeted lower, as expected, after the Brexit vote saw the United Kingdom leaving the European Union.

Aussie Dollar Technical Analysis

Let’s talk about today’s daily AUD/USD technical analysis. Then we will talk trade strategy. There is near term support lining up at 0.7301. A daily close below this first downside barrier challenges the next technical support level that line up at 0.7220. The alternative Aussie Dollar technical analysis, should the AUD move higher, notes technical resistance at 0.7385. A break above this level challenges the trend line resistance level, former support that lines up at 0.7497.

Trade Strategy

Let’s talk daily AUD/USD trade strategy. Entering a short AUD sale looks to be the right move now. However, from a risk to reward perspective, the available trading range (ATR) is too narrow making a short sale premature. For now, I will opt to stand aside and wait for a more opportune short AUD sale to come along. For now, I am flat in this Forex market.