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FxWirePro: AUD/USD approaching channel top resistance, good to sell rallies

AUD/USD short covering pushes the pair above 0.72 handle, next resistance is seen at 0.7240. The pair is approaching channel top, we would recommend booking profits on our earlier call and shorting rallies to enter again…

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FxWirePro: AUD/USD approaching channel top resistance, good to sell rallies
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AUD/USD short covering pushes the pair above 0.72 handle, next resistance is seen at 0.7240.

  • The pair is approaching channel top, we would recommend booking profits on our earlier call and shorting rallies to enter again
     
  • 0.7240 is strong resistance area,  20-day MA comes in at 0.7239 while 50% of 0.7386/0.7097 at 0.7241
     
  • There is no specific catalyst for the break higher, calm equity and commodity markets encouraging carry trades 
     
  • Momentum is higher, AUD could see further gains, break above 0.7240 could see the pair at 0.7275 (61.8% Fib of 0.7385-0.7096 fall)
     

Recommendation: 

  • Our previous call has achieved targets - we recommend booking full profits 
     
  • Enter fresh shorts at 0.7225, SL: 0.7245, TP1: 0.7160, TP2: 0.71

 

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