Here’s an update on AUD/USD short strategy last updated here. We’ve sold AUD/USD at 0.7100 as it recovered to 0.7130.
Overall outlook is unchanged that decline from 0.7314 is seen as part of the down trend from 0.8135. Such decline is expected to extend to retest 0.6826 key support (2016 low). It’s early to tell, but there is prospect of resuming long term down trend through this 0.6826.
We’ll hold short in the pair first. Stop is place at 0.7185, slightly above 50% retracement of 0.7314 to 0.7040 at 0.7178. At this point, we have not decided whether to get out around 0.6826 low yet. We’ll monitor downside momentum in both 4H and daily chart to decide at a later stage.
