Aussie Threatens Key Support Level

AUD/USD (0.7596)

Points to consider in this Aussie Dollar Forex market:

• The Aussie Dollar is edging lower against the US Dollar. Testing the three month trend line.
• A break below, with daily close, is a strong bearish indicator.
• Trade strategy: Stand aside.

The AUD/USD Forex market, is trying to build bearish momentum. If you note the below daily MT 4 chart, there is a bearish evening star candlestick which indicates a top is now in place. However, we need a daily close below the three month old rising trend line to support the top bring back into the play the bearish trend in play since the beginning of the year.

Aussie Dollar Technical Analysis

Let’s discuss today’s Australian Dollar technical analysis. There is trend line support lining up at 0.7577. A daily close below this first downside barrier challenges the next downside barrier at the July 27 low. This level lines up at 0.7420. The alternative AUD/USD technical analysis, notes the August 11 high as the first upside barrier. This level lines up at 0.7755. A break above this first technical level challenges the next upside barrier at the August 11 top at 0.7760.

Daily Trade Strategy

The fundamentals scream in favor of a bearish trend with the Australian Dollar. However, there is a degree of separation with fundamentals and the risk to reward parameters. A daily close below the aforementioned trend line is needed to confirm a bearish reversal before a short AUD sale can be attempted. For now, I will monitor my charts and remain flat in this particular Forex market.