The AUD/USD is at a crucial juncture – with moves over the next twenty for hours likely to set the short term direction for the currency. Overnight, the Aussie failed again above 1.08,
suggesting that the upside is now limited, and pushing the pair below a number of resistance levels. Traders should consider a SELL trade on AUD/USD.
The chart from the Tracker platform illustrates that the currency is sitting on the medium term trend line (in blue):
A breach of this support, combined with the fact that the AUD is now below recent highs (resistance) creates a very tradeable set up.
A move below 1.0750 (just 3 pips away) would not only see a breach of the trend line, but indicate respect of the November high at 1.0753 and the September high at 1.0764. Such a move offers a target range between 1.0500 and 1.0389. This gives a number of attractive risk reward trades:
SELL AUD/USD at 1.0753 (current market), stop loss above 1.0764, target 1.0500
SELL AUD/USD at 1.0753 (current market), stop loss above 1.0764, target 1.0389
SELL AUD/USD on a break below 1.0748, stop loss above 1.0764, target 1.0500