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Australian dollar poised for another wave down

AUDUSD Tech analysis by Simon Kazinsky on 21:08 November 05, 2017 EST

The dollar continues to show signs of strength across the board and it appears on the verge of starting another leg up. Meanwhile, disappointing macro data from Australia and the narrowing interest rate differential between Australia and the US give a good reason for the buck to continue claiming territory against its counterpart.

The monthly chart gives a very clear view that the pair is in a strong long term downtrend that has taken a break for the past two years but that is resuming as the last 4 red candles on the chart start to suggest.

Retail traders are net long on the AUDUSD pair which is good news for sellers as it usually is a contrarian signal.

There is an ascending trendline currently at 0.75 that needs to be broken for a more definitive bearish view.