Points to consider with the Australian Dollar:
- The Australian Dollar is now short AUD at 0.7328.
- Aussie Dollar forms a bearish candlestick on the daily chart.
- Trade Strategy: Short AUD sale now in play
The AUD/USD Forex market has formed a bearish dark cloud candlestick after failing at the falling trend line resistance. This suggest that the bearish downtrend for the Aussie Dollar is back in play. Last week’s correction higher hit a wall after an underwhelming non-farm payroll release on Friday.
Aussie Dollar Technical Analysis
Let’s discuss today’s Australian Dollar technical analysis. There is near term support lining up at 0.7265. A daily close below this first downside barrier challenges the next downside barrier that lines up at 0.7210.
The alternative Australian Dollar technical analysis notes the first upside barrier that lines up at a cluster area running from the January 5 high. This area is at 0.7358 to 0.7395. A break above this first upside barrier challenges the next resistance level that lines up 0.7470.
Let’s discuss today’s Australian Dollar trade strategy. A short AUD sale was just triggered at 0.7328. The first target of this sale lines up at 0.7265. The stop loss, initially, is at 0.7358 and will activate with a daily close above that level. Once I meet my first target, I will book half the trade and trail the stop loss to breakeven. I will leave the remainder of the trade open to capture any further weakness with the Australian Dollar.