Currencies | Sep 17 2014
By Ilya Spivak, currency strategist
- AUDUSD Technical Strategy: Short at 0.9186
- Support:0.9081, 0.9044, 0.8983
- Resistance: 0.9142, 0.9192, 0.9241
The Australian dollar launched a swift recovery against its US namesake following news of an increase in Chinese monetary stimulus. Near-term resistance is now at 0.9142, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing 0.9185-92 area marked by a falling channel bottom and the 50% level. Alternatively, a turn back below the 23.6% Fib at 0.9081 clears the way for a challenge of the 14.6% retracement at 0.9044.
We sold AUDUSD at 0.9186 and have since taken profit on half of our exposure The rest remains open to capture renewed downside momentum. The stop-loss has been adjusted to breakeven (0.9186).
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