Is the AUD/USD in the Sell Zone?
Rowan Crosby • 1 min read
The AUD/USD has had a wild week to say the least, but it now appears things might be going back to a more of the technicals and less around the news.
Last week, we saw a political crisis hit the ruling Liberal party, which led to the PM being ousted by his own party.
That was a negative for the AUD/USD, as it fell on the rumours and the removal of the previous PM. However, there was a quick retrace as things turned around for the better and the new leader (Scott Morrison) came in and tried to add some certainty.
This has led the AUD/USD to rally and there is no doubt that the USD has also played its role.
At the same time the US Dollar Index has been falling and we have seen it take out a number of key support levels.
This makes me think that the AUD/USD is looking like a good selling proposition at the moment.
The AUD/USD is now below major resistance at 0.7350, but this to me is a great opportunity to short.
A push into this level is the equivalent of ‘buying the dip’ in the USD.
I like selling 0.7350, because it is the top of the channel that has been holding strongly for us, for some time. Along with the US weakness.