Weekly chart says Aussie could drop from here
The weekly chart (below) has a big downtrend line on it that has been the scene of recent failures. It's at 0.7656 this week, and we're not too far away. This allows us to set a short with a reasonably tight stop versus the potential reward.
My only worry is a hold above 0.7590 (Marabuzo support) so I'll be watching price action if/when we get to here for further clues.
Management and risk description
Once we hit the first target the stop on remaining balances can be reassesed/moved lower.
Entry: sell below 0.7656.
Stop: a daily close above 0.7760.
Targets: 0.7430, 0.7150 and 0.7010.
Time horizon: 2 weeks plus.
Weekly Bar chart showing the trendline.
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more