Currencies | Sep 23 2014
Reprinted with permission of the publisher. The above story can be read on the website www.dailyfx.com at this link.
By Ilya Spivak, Currency Strategist
Talking Points:
- AUDUSDTechnical Strategy: Short at 0.9186
- Support:0.8853, 0.8792, 0.8693
- Resistance: 0.8902, 0.8952, 0.9013
The Australian dollar continues to sink against its US namesake, with prices dropping to the lowest level in close to eight months. A daily close below the 61.8% Fibonacci expansion at 0.8853 exposes the 76.4% level at 0.8792. Alternatively, a turn back above the 50% Fib at 0.8902 opens the door for a test of the 38.2% expansion at 0.8952.
We entered short AUDUSD at 0.9186 and have since taken profit on half of our exposure. The rest remains open to capture further downside momentum with a stop-loss at breakeven (0.9186).
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