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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7715, 0.7632, 0.7566
- Resistance:0.7766, 0.7818, 0.7880
The Australian Dollar may be preparing to resume the down trend against its US namesake after producing a bearish Three Inside Down candlestick pattern. Near-term support is at 0.7715, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.7632. Alternatively, a turn above the 14.6% Fib at 0.7766 opens the door for a test of the 0.7813-18 area (38.2% Fib retracement, June 3 high).
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com