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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7680, 0.7559, 0.7467
- Resistance:0.7731, 0.7818, 0.7880
The Australian Dollar is attempting to build downside momentum against its US namesake as expected after prices produced a bearish Three Inside Down candlestick pattern. Near-term support is at 0.7680, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 0.7559-97 area (triple bottom, June 1 low). Alternatively, a move above the 23.6% Fib at 0.7731 opens the door for a challenge of the 0.7813-18 area (38.2% 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