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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7632, 0.7559, 0.7499
- Resistance:0.7715, 0.7766, 0.7818
The Australian Dollar is edging lower against its US counterpart as expected after putting in a bearish Three Inside Down candlestick pattern. A daily close below 38.2% Fibonacci expansion at 0.7632 exposes the 0.7559-66 (triple bottom, 50% level). Alternatively, a reversal above the 23.6% Fib at 0.7715 clears the way for a test of the 14.6% expansion at 0.7766.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. With that in mind, we will remain flat for now, waiting for price action to offer a more compelling opportunity down the road.
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— Written by Ilya Spivak, Currency Strategist for DailyFX.com