Disappointing retail sales and trade data out of Australia dragged down the Australian dollar, which experienced a bout of impulse selling overnight. Ian Coleman from First 4 trading is focused on AUDUSD and the potential for further selling pressure in the currency pair. The Dollar Index has experienced a large reversal to the downside recently. Ian notes that we are currently at the 261.8% extension level, which typically signals a correction to the upside in the near future. With the dollar expected to rise and the Australian dollar under pressure, Ian is looking to sell AUDUSD at the market open and at USD 0.7737. His two targets for the trade are USD 0.7650 and USD 0.7600. A stop can be placed at USD 0.7750.

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