Australian Dollar hits a 2 Month Low

Points to consider in this Australian Dollar Forex market:

• Australian Dollar now trading at a two month low against the US Dollar. The Support levels below 0.73 now in focus.
• Risk to reward parameters argue against taking a short AUD trade at this time.
• Trade strategy: Stand aside

The AUD/USD Forex market continues to push lower as price action is now trading near a two month low. It would appear this Forex market has a top in place below the pivot at 0.80. If you note the chart, this was expected as the Australian Dollar put in a bearish evening star candlestick before reversing direction towards the support levels.

Australian Dollar Technical Analysis

Let’s talk about today’s daily AUD/USD technical analysis then trade strategy. There is near term support lining up at 0.7211. A daily close below this first downside barrier challenges the next technical support lining up at 0.7065. The Alternative Aussie Dollar analysis, notes the first upside barrier lining up at 0.7330. A break above this first upside layer challenges the next technical barrier at 0.7549/50.

Trade Strategy

Let’s talk trade strategy in this Forex market. The overall fundamental trends for this year make a short AUD sale compelling at this time. However, from a risk to reward perspective, price action is too close to a support layer to enter this trade. A short sale is a bit premature, as I would prefer a corrective bounce higher, opening a more attractive short sale. For today, I will opt to stand aside and remain flat in the AUD/USD Forex market.