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Talking Points:
- AUD/USD Technical Strategy: Flat
- Support: 0.7680, 0.7602, 0.7535
- Resistance:0.7731, 0.7813, 0.7880
The Australian Dollar paused to consolidate against its US namesake after attempting to launch a recovery from monthly lows. Near-term resistance is at 0.7731, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 0.7813-18 area (38.2% level, June 3 high). Alternatively, a move below the 14.6% retracement at 0.7680 opens the door for a test of the 38.2% Fib expansion at 0.7602.
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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Daily Chart – Created Using FXCM Marketscope
— Written by Ilya Spivak, Currency Strategist for DailyFX.com