Aussie Turning Bearish – A Look at AUD/USD, AUD/CAD, and AUD/NZD

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Aussie Turning Bearish - A Look at AUD/USD, AUD/CAD, and AUD/NZD

The Australian Dollar (Aussie) has turned flat, and is now showing signs that it might be turning bearish. Let’s take a look at the technical developments in the AUD/USD, AUD/CAD and AUD/NZD pairs.

The AUD/USD has downside toward the 0.92-0.9210 lows from April and May. If there is pullback, we should look for resistance in the 0.9320 area, which was a former support for the price top in June and July. A break above 0.9380 would revive a bullish outlook, otherwise look for sellers to fade AUD/USD at least toward 0.92. The AUD/CAD is at the crossroad after a bullish breakout in July. This week starts with a test of this breakout, and if price can hold above 1.01, the bullish outlook might still be viable. Otherwise, we are medium-term sideways, with short-term bearish outlook toward the 1.00 handle. AUD/NZD is forming a double top near 2014’s rising channel resistance. If the double top is confirmed, we can anticipate a swing towards the 1.0820-1.0850 area. A break back above 1.10 however would invalidate the double top and suggest bullish continuation in the short-term.

To contact the reporter of this story, email Fan Yang at fan@forexminute.com
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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.