AUD/USD-Important Support Level For This Week
Shain Vernier • 1 min read
It is Monday morning once again, and the markets are open for business. It is an abbreviated trading week due to the Thanksgiving holiday weekend, so grabbing a few good trades early on will be the goal.
Currently, there is an active short position for the AUD/USD over on the signals page. This trade looks good. Kudos to all that followed the setup and are taking some money out of the market!
As my colleague Skerdian talked about in an earlier brief, the AUD/USD is in the midst of continuing the downtrend that started in mid-September.
AUD/USD, Daily Chart
From a technical standpoint, bearish sentiment is in complete control of the action. Price keeps pushing lower, in search of valid support. A couple of items that are worthy of note:
From Oct. 30 to Nov. 11, price bounced off of the 38% Fibonacci retracement of 2017’s range, .7628.
The 50% Fibonacci retracement of 2017 is coming into view at .7475. I expect price to behave in much the same fashion as it did at the 38% level.
This market is very likely to test the .7475 level in the next week or so. Be sure to remain aware of its presence, as long-term support and resistance levels are often proven relevant.
In addition, the .7475 is also a round number, which lends credence to its validity. With a bit of luck, we will receive solid price action to this level and give us a nice long entry before the market breaks for the Thanksgiving holiday.
As always, trade smart and for tomorrow!