Waiting on a Short Aussie Dollar Sale

AUD/USD (0.7356)

Points to consider in this Aussie Dollar market:

• Aussie Dollar continues to move lower and is now below the 0.74 handle.
• Risk to reward parameters are not quite right for a short AUD sale.
• Trade strategy: Stand aside, pending short sale at 0.7602

 The AUD/USD Forex market continues to fall lower after pausing briefly to digest losses. If you note the below daily MMT 4 chart, the Aussie Dollar is now firmly below the level at 0.74. The bearish evening star candlestick was confirmed, thus bringing these recent losses. This indicates the overall downtrend for the Australian Dollar is back in play.

Aussie Dollar Technical Analysis

Let’s talk about today’s daily AUD/USD technical analysis. There is near term support lining up at 0.7330. A daily close below this first downside barrier challenges the next technical support level that lines up at 0.7211. The alternative Australian Dollar technical analysis, should this market move back higher, notes the first upside barrier lining up at 0.7540. A break above this technical level notes the former trend line support now resistance level as the next upside barrier. This level is at 0.7578 to 0.7595.

Trade Strategy

Let’s talk about today’s trade strategy. I had a short sale pending at 0.7602. This was left open all of last week and price positioning has since invalidated the possibility of this trade. For now, I will opt to stand aside as risk to reward parameters argue against placing a new short AUD sale. Once a better trade setup comes along, I will attempt another trade. For now, I will remain flat in this Forex market.