Trader, analyst and instructor with a 6-year experience

Selling AUD/USD: reasons and targets

  Alex Weber

Hi, everyone!

I see a great trading opportunity in selling the Australian dollar versus the US dollar these days. The “long-legged doji” candle on Friday confirmed the recoveries are limited. Strong resistance lies in the 0.7850/7880 area. This is where 38.2% Fibonacci lies. The bearish trend remains active below 0.8030 (61.8% Fibonacci).

The 0.7750 support area still contains the bearish pressure, but I expect it ti intensify at the end of the week. On Thursday Australia will release employment data (employment is forecasted to decline, while jobless rate – to pick up). On Friday the RBA Governor Stevens delivers a speech. He will likely sound dovish, justifying the recent rate cut by downgrading the economic forecasts.

Trade idea: SELL AUD/USD on a break below 0.7750 with a target of 0.7630 and a stop at 0.7800.

Good luck!

Chart. H4 AUD/USD

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