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AUD in Focus

Resistance is Strong at 0.6900: AUD

Posted Thursday, November 7, 2019 by
Rowan Crosby • 1 min read

Despite the upbeat mood for traders of the Aussie, there still seems to be some underlying selling pressure just above the current levels.

We are seeing that follow through a little at the moment as well as the AUD/USD is down around 0.15% in early Asian trade.

There was some positive news, with the trade balance data coming in better than expected. With both an improvement in exports and lower imports which is generally a good combination.

But nevertheless, there is still weakness coming in after what was only a small pop on the data.

To me, this is starting to look a bit like a technical trade. We know that there is a fair bit of positive news for the AUD already priced in. With the RBA being the biggest development of late.

On the charts, we are starting to see 0.6900 as a pretty significant level and the price action is also starting to support it.

Technically, it looks like the Aussie has made a double (if not a triple top) and that is very bearish. Add in the fact that 0.6900 has been strong resistance and it looks like the Aussie might have its work cut out to push through that area.

So for us, that’s good news. We can use those highs as an area to key off – effectively as a stop loss.

That allows us to short on any bounce, if it remains below 0.6900.

I think 0.6820-0.6800 would be where I would be looking to take profits and I would piece out in those two levels.

Like I say, I feel the fundamentals are priced in nicely at the moment, so we have a decent technical trade here.

AUD/USD
AUD/USD – 240min.
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