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AUDUSD Eyes 0.7380 Following RBA Rate Cut

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I’ve been talking about AUDUSD for some time now. At first, it was the upward sloping flag that hinted at the idea that the three-month rally was tiring. Then the false break above 0.7800 on April 19th gave us reason to believe that an extended move in the opposite direction was forthcoming.

Fast forward to today and the pair has lost 300 pips since the April high and is currently trading below a confluence of support at 0.7550 on an intraday basis. A daily close (5 pm EST) below this area would open the door for further losses toward the next support level at 0.7380.

While I do think the 0.7380 handle will put up a good fight, there’s a good chance that it too will fall and expose the 0.7260 level. This price represents the February high and also played a key role as support between July and August of last year.

From here, traders can begin watching for selling opportunities on a daily close below 0.7550 for a move toward the October and December 2015 highs at 0.7380.

As a side note, the recent weakness in the Australian dollar has triggered a second opportunity in a pair that I mentioned last Friday.

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AUDUSD key technical break on the daily chart

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6 comments
James Turcinov says

Great look at the AUDUSD…Thanks.

Reply
    Justin Bennett says

    James, you’re welcome. Glad I could help.

    Reply
Leonel Ruiz says

I took a sale audusd at 74977 but i am scare because is going up at 8:20pm
i am no good on shorting , this is my weakest side (selling).

Reply
    Justin Bennett says

    Leonel, the best thing you can do if you aren’t comfortable in a position is to get out.

    Reply
anuj says

How can we judge false breakout

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