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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.9325 (23.6% Fib ret.), 0.9242 (38.2% Fib ret.)
- Resistance: 0.9429 (trend line), 0.9460 (Apr 10 high)
The Australian Dollar declined as expected against its US counterpartafter the pair put in a Shooting Star candlestick below the 0.95 figure. The pair is now testing support at 0.9325, the 23.6% Fibonacci retracement, with a break downward on a daily closing basis initially exposing the 38.2% level at 0.9242. Alternatively, a move above trend line support-turned-resistance at 0.9429 aims for the April 10 highat 0.9460.
Prices are trading too close to relevant support to make a short trade attractive from a risk/reward perspective. We will continue to stand aside for now, waiting for an actionable opportunity to present itself.
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Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com