Australian Dollar to Accelerate Lower as Prices Break Near-Term Support

Last week, we opted to remain short the Australian Dollar having sold AUDUSD at 0.7896, noting a clear Three Inside Down bearish reversal pattern on a second attempt to test resistance at the June swing high. At that time, we also identified near-term support is seen at a rising trend line established from the swing low in early March. Prices have now slipped below this juncture, opening the door for an acceleration of bearish momentum. We will remain short, continuing to target a decline to the previous swing bottom at 0.6949. A stop-loss will be activated on a daily close above the 06/03 wick high at 0.8269.

For complete analysis of the major currencies, please see my latest weekly technical outlook report.