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Talking Points:
- AUD/USD Technical Strategy: Short at 0.7516
- Aussie Dollar breaks support set from post-Brexit lows
- Short trade triggered aiming for down trend resumption
The Australian Dollar issued the largest daily decline in a month against its US namesake, breaking the near-term rising trend carved from lows set after the Brexit referendum. The reversal hints that the dominant longer-term down trend may have resumed.
Near-term support is at 0.7413, the 38.2% Fibonacci expansion, with a break below that on a daily closing basis opening the door for a test of the 50% level at 0.7332. Alternatively, a reversal back above the 23.6% Fib at 0.7514 sees the next upside barrier at 0.7576, the 14.6% expansion.
A short AUD/USD position was triggered at 0.7516, initially targeting 0.7413. Profit on half of the position will be booked when the first objective is met. The remaining exposure left in play to capture any follow-on weakness with a stop-loss adjusted to the breakeven level.
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